Northern Data Mulls IPO for its AI Unit

Northern Data is contemplating listing its cloud computing and data center operations on the Nasdaq as two distinct entities during the initial half of 2025.

Northern Data AG, a German cloud computing and Bitcoin mining company, purportedly is in the process of conducting an initial public offering for two of its entities in the United States. The company is reportedly pursuing a valuation of up to $16 billion.

In a July 1 report from Bloomberg, executives at Northern Data, Europe’s most significant Bitcoin miner by market cap, have contacted multiple advisers regarding an IPO and are considering a prospective listing in the first half of 2025, according to sources familiar with the matter.

The current plan outlines that Northern Data will list the “Taiga” and “Ardent” entities on the Nasdaq: its cloud computing and data center divisions.

In November, Northern Data reportedly informed analysts and investors that its Bitcoin (BTC) mining business, Peak Mining, could also be listed separately.

The cryptocurrency mining business of Northern Data in the United States was contemplated for an IPO listing in February 2021; however, action still needs to be taken.

The sources stated that the banks had recommended a valuation of $10 billion to $16 billion. However, they added that discussions are ongoing, the plans may be altered, and Northern Data may cancel the IPO entirely.

Northern Data did not promptly address the inquiry for commentary.

In 2009, Northern Data Group was established as Northern Bitcoin AG in Germany, becoming one of the first Bitcoin mining firms.

The company operates three business divisions: Taiga, Ardent, and Peak Mining. Peak Mining is its U.S. Bitcoin mining unit, developing 700 megawatts of high-performance computing data centers. The company has stated that these data centers will ultimately be able to provide up to 40 exahashes.

Bloomberg reported that Peak Mining concentrated its mining operations on the Ethereum network for a period before it transitioned from proof-of-work to proof-of-stake in September 2022. It has since redirected its attention to Bitcoin.

As profit margins in the Bitcoin mining sector continue to diminish, Northern Data is one of numerous Bitcoin miners that have diversified into the AI sector.

In recent months, Core Scientific, TeraWulf, and Hut 8 Corp are among the other Bitcoin mining firms that have followed a similar trajectory.

In November 2023, Northern Data obtained $610 million in debt financing from stablecoin issuer Tether to facilitate expenditures in its mining and AI operations.