Author: Chloe, ChainCatcher
Recently, Tether's majority-owned subsidiary Northern Data announced the sale of its Bitcoin mining division, Peak Mining, for $200 million. This transaction not only reflects the complex relationships within Tether's power structure but has also sparked strong market skepticism regarding Tether's related-party transactions.
Tether's Asset Transfers Are Intricate, a Classic "Left-Hand to Right-Hand" Transaction Strategy
According to corporate registration documents from the British Virgin Islands, the United States, and Canada, the three companies acquiring Peak Mining are Highland Group Mining, Appalachian Energy, and 2750418 Alberta ULC. Their ultimate beneficial owners are none other than Tether's co-founder Giancarlo Devasini and CEO Paolo Ardoino. Both individuals are listed as directors on Highland Group's board, Devasini solely serves as director for Alberta ULC, while the controller of Appalachian Energy remains undisclosed.
Given that Tether itself holds approximately 54% of Northern Data's equity and the two entities have a €610 million financing arrangement, their financial ties are exceptionally close. Against this backdrop, selling a significant asset to companies controlled by Tether's top executives essentially constitutes a related-party transaction.
However, Northern Data is currently listed on a less regulated secondary market in Germany, where disclosure requirements are far lower than those of a primary market. Consequently, the company was not required to disclose the buyer's identity publicly or label the transaction as a related-party deal. The true identities of these acquiring entities only became clear weeks after the deal's completion, through corporate filings in the British Virgin Islands, the US, and Canada.
Furthermore, the timing of the transaction is also highly questionable. The sale of Peak Mining occurred just days before the video platform Rumble announced a $760 million acquisition of Northern Data. Tether also holds nearly 48% of Rumble's equity.
This move is seen as a deliberate effort by Tether to strip out the highly volatile mining division just before the merger, allowing Northern Data to be integrated into Rumble as a more singular AI cloud computing provider, thereby achieving a higher market valuation and reducing acquisition risk.
Within this complex asset transfer process, the €610 million loan previously provided by Tether to Northern Data became the core scheduling tool. In the Rumble acquisition deal, this loan will be reconfigured: half will be repaid to Tether by Rumble in the form of stock, while the other half will be converted into a new loan provided to Rumble, secured by Northern Data's assets.
This multi-layered financial design creates an ecosystem of internal capital self-circulation among the holding company, the acquisition target, and enterprises managed by top executives personally. It further allows Tether's leadership to transfer mining assets into private ownership while consolidating control over the entire structure.
Tether's Subtle Relationship with Wall Street and the US Cabinet
Beyond internal asset maneuvering, Tether's relationship with Wall Street investment bank Cantor Fitzgerald is equally complex. This is under strict scrutiny from both the market and judicial authorities, especially after Cantor's CEO, Howard Lutnick, was nominated and confirmed as the US Secretary of Commerce. The alliance between Tether and Howard Lutnick dates back to 2021 when Tether, to quell market doubts about reserve transparency, entrusted Cantor with custody of the tens of billions of US Treasury bonds backing USDT, making Howard Lutnick the most crucial credibility endorser for Tether within the traditional financial system.
According to a Wall Street Journal report from last November, Lutnick personally participated in negotiations for an investment agreement that was expected to grant Cantor approximately 5% of Tether's equity, valued at up to $600 million. This deal drew strong criticism from Federal Senator Elizabeth Warren, who stated that Tether has long been seen as a tool involved in financial crime, and having the head of its primary asset custodian lead the Commerce Department constitutes a serious risk of conflict of interest.
Facing overwhelming skepticism, Lutnick clarified the details of the cooperation with Tether during his confirmation hearing, stating that Cantor's final investment form was "convertible bonds" rather than direct equity, asserting that it does not currently hold direct equity. The financial community widely believes that such convertible bonds grant Cantor the right to convert the debt into equity in the future, essentially representing a deferred ownership interest that could even allow the holder to exercise substantive control if necessary.
Even though Lutnick stated during the hearing that issuers should not be held responsible for their products being used by criminals, he also promised that upon becoming Secretary of Commerce, he would require stablecoin issuers to undergo more independent audits and be纳入 (incorporated into) the monitoring of US law enforcement agencies. It can be said that after Lutnick officially takes the helm of the Commerce Department, Tether's relationship with Wall Street and the US cabinet becomes even more inscrutable.
Tether Set to Reap $15 Billion in Profit This Year, with a Profit Margin of 99%
Moreover, Tether's business empire has long surpassed the定位 (positioning) of a mere stablecoin issuer. From crypto payments and digital asset lending to mining布局 (layout), from AI robotics and brain-computer interfaces to media platform investments, and even a recent attempt to acquire the Italian football club Juventus.
Nate Geraci, President of The ETF Store, once remarked: "While US politicians debate whether stablecoins should be allowed to pay interest, it's worth reminding everyone that Tether is set to reap $15 billion in profit this year, with an interest rate of 99%."
Is the capital accumulated from such supernormal profits creating value for the crypto industry, or is it constructing a closed wealth circulation system for internal高层 (top executives)?
Through the asset剥离 (divestiture) of Northern Data, the merger integration with Rumble, and its relationship with Wall Street, Tether seems to have constructed a closed yet powerful商业生态 (business ecosystem). This ensures the privatization of core assets by its top executives while also pushing its own empire toward the core of US power through the involvement of traditional financial giants and high-level US cabinet members.
Every seemingly independent business decision by Tether is, in reality, intricately linked within the same power structure.
