Tether Limited, the issuer of the USDT stablecoin, has made a $420 million purchase of 10,000 H100 chips from Nvidia.
These graphics processing units (GPUs) will be used as part of a deal in which Tether will gain a 20% ownership stake in the mining company Northern Data.
Northern Data will then offer the GPUs for rent to AI startups, according to Forbes.
Tether will acquire its stake in Northern Data through Damoon, an Irish-registered firm. Northern Trust will hold a 70% ownership stake in Damoon, with an option to purchase the remaining 30%.
The financial details of the agreement were not disclosed. Northern Data’s CEO Arush Thillainathan explained that Tether had the funds to “intercept” the highly sought-after H100 chips.
Forbes highlighted that Northern Data has faced criticism for its past use of offshore structures in purchasing equipment, and regulators have questioned the accuracy of the company’s financial statements.