How an investor gained from crypto giant’s moves
With a surplus of funds, the company that possesses one of the world’s most widely used cryptocurrencies is embarking on a shopping spree. Tether has acquired ownership of companies specializing in artificial intelligence and neural implants, facilitated by a German investor who has had varying degrees of success with their business introductions. Tether operates the cryptocurrency called tether, which currently has a circulating supply of over $115 billion worth of tokens. Thanks to the increase in interest rates, Tether is generating approximately $4 billion annually from the Treasurys that support its cryptocurrency.
The company has brought on board tech investor and entrepreneur Christian Angermayer to assist in investing its windfall. The vibrant financier has also explored unconventional investments such as psychedelics, dinosaur fossils, and an alternative Olympics that promotes the use of performance-enhancing drugs. Up to this point, Angermayer has assisted Tether in investing approximately $1.5 billion into two companies in which he already has ownership interests. In addition, he received commissions on certain transactions. The companies they invested in have often experienced financial losses.
In the past year, Tether acquired majority stakes in Northern Data, a German data center operator that aims to become an AI company, and Blackrock Neurotech, a brain implant company based in Utah that is facing challenges in competing with Elon Musk’s Neuralink. Tether failed to provide any responses to the questions. A spokesperson for Northern Data stated that the company’s revenue growth is a clear indication of the positive outcomes resulting from their strategic investments in AI.
Tether is not the only crypto company that has made significant investments in deals. During its prime, FTX, a crypto brokerage, invested a staggering $1 billion in a bitcoin miner located on the Kazakh Steppe, and another $500 million in the AI-firm Anthropic. Angermayer’s family office, the Malta-based Apeiron Investment Group, specializes in facilitating connections between investors and companies. In certain transactions, Apeiron connected affluent buyers with high-priced investments that ultimately yielded disappointing results.
In 2017, Angermayer’s family office played a significant role in assisting Chinese conglomerate HNA Group in becoming the largest shareholder in Deutsche Bank, a struggling German lender. The bank’s shares continued to decline following the agreement. HNA was eventually sold due to financial difficulties, but fortunately, its losses were minimized by strategic hedging. HNA, burdened by a significant amount of debt and facing close examination from the Chinese government, ultimately sought protection under bankruptcy laws. Angermayer later began collaborating with SoftBank Group, the Japanese conglomerate that had raised the largest venture capital fund in the world. He connected the company with Wirecard, a German payments processor that was facing allegations of accounting fraud at the time.
SoftBank provided support to stabilize Wirecard by offering a $1 billion convertible bond. Both SoftBank and Wirecard compensated Angermayer’s family office with a substantial fee for the introduction. After receiving funding from SoftBank, Wirecard recently entered into a lasting collaboration with Cyan AG, a cybersecurity company in which Angermayer and a business partner held a 27% stake. The individual in question had also held the position of HNA’s representative on the board of Deutsche Bank. Angermayer facilitated connections between executives at Cyan and Wirecard. Following the SoftBank deal, Wirecard faced a devastating collapse due to an accounting scandal. SoftBank sold off the bond to investors who suffered significant losses. According to a source familiar with the transactions, Apeiron received payment at the standard market rate for facilitating the introductions. However, they were not involved in the negotiation, analysis, or structuring of the deals themselves. According to the source, Angermayer also played a role in facilitating a number of other deals that were not as contentious.
In recent times, Angermayer and Apeiron have been directing their attention towards what they refer to as the “Next Human Agenda,” by investing in trendy industries such as cryptocurrency, longevity, and psychedelic pharmaceuticals. He co-founded the Enhanced Games, with support from tech investor Peter Thiel, as a unique alternative to the traditional Olympics. The tournament is known for its embrace of performance-enhancing drugs. Angermayer frequently dons vibrant shirts adorned with mushroom patterns. He has a tattoo on his forearm depicting the chemical symbol for psilocybin. He has thrown lavish birthday celebrations at a historic Austrian palace and at a cryptocurrency conference in the Bahamas. On Instagram, Angermayer proudly displays his impressive collections of fossilized dinosaur bones and ancient sculptures that are centered around items influenced by psychedelic use.
There are moments when the personal and professional aspects of life overlap. In 2022, Apeiron presented investors with a new fund proposal called “Apeiron Jurassic Fund One.” The fund’s objective was to secure $30 million in investments specifically for the purpose of acquiring dinosaur fossils. The promotional materials mentioned that the fund would make use of a global network of individuals with specialized skills and expertise. Additionally, it highlighted the fund’s impressive collection of fossils, which includes a juvenile tyrannosaurus rex and a diplodocus. The fund was ultimately discontinued.
Angermayer also invested heavily in Northern Data, a German-listed bitcoin miner that has recently shifted its focus to AI cloud hosting. Angermayer acquired a portion of that stake through Northern Data’s purchase of two cryptocurrency mining companies, in which Angermayer or his firms had ownership interests. One was founded by a former employee of his family office. Angermayer subsequently started raising funds for Northern Data and implemented a fee structure for the service.
Apeiron also invoiced Northern Data for facilitating connections with potential investors. The charges involved supporting and publicizing the company at a crypto conference event in the Bahamas, which included an energetic performance by former One Direction star Liam Payne, and acquiring tables at Elton John’s Oscar watch party. According to a source familiar with the transaction, Apeiron sold its tables to Northern Data at the same price it acquired them. Based on Northern Data’s financial statements, the company allocated €840,000 (approximately $940,000) towards Apeiron’s fundraising initiatives in 2022.
According to financial disclosures, Northern Data reported a staggering €420 million in losses from the acquisition of the two cryptocurrency-mining companies. According to current and former employees, Northern Data found itself in a precarious financial position in early 2023 due to the broader declines in crypto assets. A company representative stated that Northern Data has consistently operated with success and that its audited financials indicate that the company is currently in a strong financial position. Tether made its initial investment in Northern Data during the spring of 2023, acquiring a stake in the company for €32.3 million. According to insiders, Tether had a desire to maintain confidentiality regarding its participation in the transaction. Angermayer received a payment equivalent to 5% of the deal’s value, marking the first payment he received for facilitating the introduction of the two companies.
After some time, Tether made a purchase of €48 million worth of Northern Data shares. Once again, Northern Data chose not to publicly disclose the identity of its investor, Tether. A representative from Northern Data stated that both companies fulfilled their obligations regarding the disclosure of the transactions. Angermayer was compensated with an additional 5% fee for the transaction. According to the invoices for the fees reviewed by the Journal, he received a total of €4 million for the two deals. After securing an early stake, Tether publicly supported Northern Data’s transition to AI. Tether established an Irish company named DaMoon and provided it with a loan of €400 million to acquire cutting-edge Nvidia H100 processors.
DaMoon was later acquired by Northern Data. Tether was given newly issued shares of Northern Data in return. Tether’s CEO, Paolo Ardoino, expressed his enthusiasm for the investment in Northern Data during a podcast, stating that it was an ideal match. The company’s management, structure, and teams received high praise. Following that, Tether extended a line of credit worth €575 million to Northern Data, which has been fully utilized. Tether emerged as the majority shareholder of the company after the deals were finalized. Last month, Northern Data announced its plans to raise an additional €214 million, with €110 million coming from Tether, in order to acquire more processors.
A representative from Northern Data refused to provide any information regarding whether Angermayer or Apeiron received any fees related to the subsequent transactions. The individual stated that all fees paid by the company have been properly disclosed in accordance with legal and accounting standards. Tether, headquartered in the British Virgin Islands, has achieved remarkable success. Investors are drawn to it due to the stability of its cryptocurrency, which is designed to maintain a constant value of $1. It possesses a high level of liquidity, which makes it well-suited for conducting business transactions.
Tether has been found to be utilized by individuals involved in illegal activities, such as drug smuggling, supporting terrorist organizations, and countries facing sanctions, as stated in government indictments. Regulators have increased their scrutiny, leading to certain banks declining to engage in business with the company, according to government and bank officials. Tether emphasizes its collaboration with global law enforcement and its commitment to maintaining robust compliance programs to mitigate risks such as money laundering, terrorism financing, sanctions violations, and other potential threats.
Angermayer made another investment in Tether. He held a prominent position as co-chair of the board and had a significant stake in Blackrock Neurotech. This company specializes in developing brain-computer interfaces, which are implanted in the brains of individuals with paralysis to assist them in operating various technological devices. The company, based in Salt Lake City, has been working on developing technologies since 2008. Apeiron spearheaded a significant $10 million investment round for Blackrock Neurotech in 2021. According to former employees, under Angermayer’s leadership, the company made a strategic move towards going public. This decision was driven by the growing interest in the sector, fueled by Musk’s Neuralink and the enthusiasm of small investors.
However, the business experienced a decline. According to former employees, Blackrock Neurotech experienced significant growth following the investment, with a substantial increase in its workforce and the establishment of new business divisions. After that, there were a number of job cuts in 2022 and 2023. Last summer, Angermayer and Apeiron spearheaded a successful $37 million fundraising round. According to former employees, the company experienced a significant depletion of funds and had to let go of more staff. Blackrock Neurotech did not respond to requests for comment.
In April of this year, Tether made a significant investment by acquiring a majority stake in the company for $200 million, which valued Blackrock Neurotech at $350 million. The crypto company announced its expansion beyond offering a digital dollar alternative to now focusing on enhancing human potential through future advancements in brain implants. Northern Data, a company whose shares are traded in Germany, is contemplating the possibility of listing in the United States. According to a slide deck reviewed by the Journal, certain bankers have expressed optimism about the potential value of the deal with Northern Data, suggesting it could reach $20 billion within a few years. The company chose not to provide any comments regarding a potential listing in the United States.
