Northern Data sold its bitcoin mining unit Peak Mining for up to $200 million to companies tied to Tether executives just before a major acquisition, raising fresh concerns about governance and transparency.
Key Takeaways
- Northern Data sold Peak Mining to firms controlled by Tether’s top executives without disclosing the related-party nature of the deal.
- The $200 million sale occurred days before a $767 million agreement for Rumble, in which Tether owns 48%, to acquire Northern Data.
- Regulatory pressure looms, including tax fraud probes and prior lawsuits from former executives alleging financial misconduct.
- Tether continues expanding its bitcoin mining ambitions, investing over $2 billion as it seeks to become the largest miner globally by 2025.
What Happened?
Northern Data sold its bitcoin mining arm, Peak Mining, for up to $200 million. But corporate filings later revealed that the buyers are tied to Tether’s top brass, including co-founder Giancarlo Devasini and CEO Paolo Ardoino. The deal, struck without being flagged as a related-party transaction, has raised governance questions at a time when Northern Data is already under regulatory scrutiny and preparing to be acquired by Rumble.
Tether-backed Northern Data sold bitcoin mining arm to companies run by Tether’s own executives,
— GainzAlgo (@gainzalgo) December 21, 2025
Northern Data sold its bitcoin mining subsidiary Peak Mining for up to $200 million in November, but U.S. filings reveal the buyers are companies controlled by Tether co-founder… pic.twitter.com/2mc4XlCMIy
Tether Executives Quietly Bought Peak Mining
In November, Northern Data disclosed it had sold Peak Mining. However, it omitted a critical detail. The buyers were closely linked to Tether’s leadership.
Documents reviewed by the Financial Times and FinanceFeeds confirm that the acquiring entities – Highland Group Mining Inc., Appalachian Energy LLC, and 2750418 Alberta ULC are directly connected to Giancarlo Devasini and Paolo Ardoino, Tether’s co-founder and CEO respectively. Corporate records show Devasini and Ardoino control Highland Group Mining, while Devasini is listed as the sole director of Alberta ULC. The ownership of Appalachian Energy remains undisclosed due to Delaware’s corporate secrecy laws.
Although this qualifies as a related-party transaction, Northern Data did not disclose it as such. The company is listed on a lightly regulated segment of the German stock market that does not require detailed related-party reporting.
Timing Raises Red Flags Before Rumble Deal
The timing of the sale is significant. It came just days before Rumble, a conservative video platform backed by Tether, signed a $767 million agreement to acquire Northern Data.
That Rumble deal included several key financial ties:
- Tether pledged to purchase $150 million in GPU services from Rumble.
- It signed a $100 million advertising contract.
- It also extended a €610 million loan to Northern Data, half of which will convert to Rumble equity upon deal closure. The rest will become a new loan to Rumble, backed by Northern Data’s assets.
By shedding Peak Mining, Northern Data streamlined its operations ahead of the acquisition. Meanwhile, Tether quietly gained more direct control over mining infrastructure, aligning with its public ambition to dominate bitcoin mining.
A Previous Attempt to Sell to the Same Buyer
This was not the first time Northern Data tried to sell Peak Mining to entities tied to Devasini. Back in August, the company announced a nonbinding $235 million agreement with Elektron Energy, another firm controlled by Devasini. That deal fell through, and Peak Mining was ultimately sold at a lower valuation to the trio of companies linked to Tether’s leadership.
The reduced sale price and last-minute change suggest a negotiated internal deal rather than a competitive process.
Regulatory Scrutiny Intensifies
The transaction occurred amid intensifying regulatory pressure on Northern Data. In September, German and Swedish authorities raided its offices as part of an investigation into alleged €100 million VAT fraud. The company denied any wrongdoing, blaming the issue on tax misunderstandings related to GPU cloud and mining services.
Earlier in April, two former executives, Joshua Porter and Gulsen Kama, filed a lawsuit claiming Northern Data was borderline insolvent, evading taxes, and hiding financial issues. They alleged the company faced a $30 million tax bill with only $17 million in cash and a $3-4 million monthly burn rate. The lawsuit was later withdrawn voluntarily, with Northern Data stating the pair had “misunderstood” key facts.
Tether’s Broader Bitcoin Mining Play
Tether, which owns around 54% of Northern Data, has been aggressively investing in bitcoin mining across Latin America. According to Ardoino, the stablecoin giant has committed over $2 billion to mining operations in Uruguay, Paraguay, and El Salvador, with a goal of becoming the largest global miner by the end of 2025.
However, S&P Global Ratings recently downgraded Tether’s USDT stability score to its lowest level, warning that its bitcoin exposure now outstrips its reserve buffer and could leave it undercollateralized in a downturn.
CoinLaw’s Takeaway
In my experience, when executives are on both sides of a major deal and the public only learns about it through leaked filings, that’s a red flag. Transparency is the backbone of investor trust, and this transaction dodged full disclosure. While technically legal, it flirts dangerously close to governance failure.
This is especially troubling given that Tether is already under fire for its reserve practices, and Northern Data is grappling with regulatory probes and past executive allegations. Buying Peak Mining off the books before a massive acquisition gives the deal a shadowy feel, even if it passes legal muster. It’s one more example of why crypto infrastructure players need to raise their compliance game if they want long-term credibility.
