Northern Data’s Sale of Bitcoin Mining Arm to Tether Executives Raises Questions

New corporate filings reviewed by the Financial Times have added critical details to the Northern Data Bitcoin arm sale, revealing direct involvement by senior Tether executives—an element not clearly disclosed at the time of the transaction.

The development has reignited debate around transparency, related-party transactions, and governance standards in crypto-adjacent public companies, particularly those backed by major stablecoin issuers such as Tether.

Details of the Northern Data Bitcoin Arm Sale

In November 2025, Tether-backed Northern Data sold its Bitcoin mining subsidiary, Peak Mining, in a deal valued at up to $200 million. While the sale was publicly announced, the identities of the buyers were not initially disclosed.

Subsequent U.S. and international filings now show that Peak Mining was acquired by companies controlled by Giancarlo Devasini, Tether’s co-founder and chairman, and Paolo Ardoino, Tether’s CEO. These entities include Highland Group Mining Inc., Appalachian Energy LLC, and 2750418 Alberta ULC.

This revelation reframes the transaction as a related-party deal, even though Northern Data was not legally required to disclose it as such due to its listing on an unofficial but regulated German market segment.

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Tether Executives’ Involvement Raises Governance Questions

The Tether executives' Bitcoin mining deal has drawn attention because the same individuals effectively sat on both sides of the transaction. According to filings:

• Highland Group Mining is controlled by Devasini and Ardoino

• Devasini is listed as the sole director of Alberta ULC

• Appalachian Energy LLC has opaque ownership disclosures

This was not the first attempt to sell Peak Mining to Devasini-linked entities. A prior nonbinding agreement in August 2025 proposed a $235 million sale to Elektron Energy, another Devasini-controlled firm, but that deal failed to close.

Critics argue that while the transaction may be legally compliant, it raises ethical and transparency concerns, particularly for minority shareholders and market observers tracking Northern Data mining arm news.

Strategic Timing and the Rumble Acquisition Context

The timing of the Northern Data Bitcoin arm sale adds another layer of complexity. Just days after the divestment announcement, Rumble, a platform in which Tether holds a 48% stake, agreed to acquire Northern Data in a deal valued at approximately $767 million.

As part of this broader arrangement:

• Tether committed to $150 million in GPU service purchases

• A separate $100 million advertising agreement was signed

• A €610 million loan from Tether to Northern Data will partially convert into Rumble equity

Together, these moves point to deep financial entanglement between Tether, Northern Data, and Rumble—fueling debate over consolidation of influence within crypto infrastructure markets.

Regulatory Scrutiny and Tether’s Expanding Mining Ambitions

The Tether-backed Northern Data sale occurred amid heightened regulatory attention. European authorities previously raided Northern Data’s offices in Germany and Sweden over alleged VAT irregularities exceeding €100 million—claims the company has denied.

Meanwhile, Tether continues to expand aggressively into Bitcoin mining. CEO Paolo Ardoino has stated the firm aims to become the world’s largest Bitcoin miner by the end of 2025, citing the need to secure over $10 billion in Bitcoin holdings. Tether has reportedly invested more than $2 billion into mining and energy infrastructure across Latin America.

However, risks remain. S&P Global Ratings recently downgraded USDT’s stability score, warning that Tether’s Bitcoin exposure could exceed its reserve buffer during market downturns.

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Conclusion

The Northern Data Bitcoin arm sale is no longer just a routine divestment—it is a case study in how governance, disclosure standards, and executive influence intersect in the crypto industry. While the transaction may comply with existing regulations, the involvement of Tether executives in a Bitcoin mining deal tied to a majority-owned company raises legitimate questions about transparency and market trust.

As scrutiny intensifies and Tether deepens its role in Bitcoin mining infrastructure, this episode underscores the growing need for clearer disclosure rules and stronger governance frameworks in crypto-linked public entities.

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FAQ

What was sold in the Northern Data deal?

Northern Data sold its Bitcoin mining subsidiary, Peak Mining, for up to $200 million.

Who bought Northern Data’s Bitcoin mining arm?

Companies controlled by Tether executives Giancarlo Devasini and Paolo Ardoino.

Why is the sale controversial?

It appears to be a related-party transaction that was not disclosed as such.

Is Tether expanding into Bitcoin mining?

Yes, Tether aims to become the world’s largest Bitcoin miner by 2025.

Does this affect USDT stability?

Indirectly, as increased Bitcoin exposure may heighten reserve risks during market downturns.