By
Temitope Olatunji
May 14th, 2024
Following the strategic investment, Northern Data Group is set to become the biggest independent artificial intelligence firm in the European market.
Northern Data Group (XETRA: NB2) shares continued with the YTD bullish outlook after leading stablecoins issuer Tether announced a strategic investment to tap into artificial intelligence (AI) among other emerging cloud technologies. According to the announcement, the close collaboration between the two companies will enable fast growth in the adoption of Tether tokens. Moreover, the collaboration will focus on several initiatives including peer-to-peer communications, super resilient data storage solutions, and generative AI products.
The investment underpins Tether’s commitment to diversify its portfolio and tap into emerging technologies in a bid to develop accessible solutions globally. Furthermore, Tether is on a quest to push the adoption of its digital products and Bitcoin to mainstream users through a sustainable environment.
“We are excited about this investment into Northern Data Group as it represents a fresh venture into new technological frontiers. This investment underscores our commitment to responsible growth and innovation while preserving the strength and integrity of Tether tokens’s reserves,” Paolo Ardoino, Tether’s Chief Technology Officer, said.
Notable, Tether clarified that the strategic investment into Northern Data Group through Damoon did not involve its reserves or the customers’ funds. Moreover, Tether has been making profit quarterly, thus capable of expanding without affecting its reserves.
Tether and Northern Data Group’s Relation
The close collaboration between Tether and Northern Data Group is symbiotic and expected to cross-pollinate each other’s missions. Earlier last month, Northern Data Group agreed with an investor to acquire the majority stake in Damoon for about €400 million. As a result, the companies agreed to acquire the latest generation of GPU hardware to complement the existing cloud computing infrastructure.
“This hardware is to be deployed within Taiga Cloud and will, when deployed, substantially increase the computing power of that division,” the company noted.
Following the strategic investment, Northern Data Group is set to become the biggest independent artificial intelligence firm in the European market. Additionally, Tether is set to significantly increase its footprint in the EU market, which has made huge progress in ensuring the safe adoption of digital assets through comprehensive regulations.
Market Outlook
Following the announcement, Northern Data Group shares gained about 3 percent after the news to trade around €23, thus cementing the 240 percent YTF rally. The €695.92 million company is set to record more gains amid high demand for AI products and cloud computing services. On the other hand, the collaboration had a significant financial impact on Tether, as the company can now provide reliable tokenization around the world.
Notably, Tether has several products including USDT, EURT, MXNT, and XAUT with a market valuation of about $83 billion, $36.3 million, $19 million, and $246k respectively.