Northern Data Weighs Crypto Mining Sale for AI Growth

To redirect its attention toward artificial intelligence solutions, Northern Data AG is considering the transfer of its Peak Mining unit

Northern Data, a German-listed crypto and artificial intelligence infrastructure company backed by stablecoin issuer Tether, disclosed on Monday that it is investigating the sale of its Peak Mining unit.

This move is intended to bolster the company’s status as a pure-play provider of AI solutions.

In a press release on October 21, the Frankfurt-based company stated that the prospective sale of Peak Mining is consistent with Northern Data’s strategy to concentrate on Europe’s largest Generative AI cloud platform and a portfolio of data centers.

Aroosh Thillainathan, the inventor and chief executive of Northern Data, underscored the significance of selecting an appropriate steward for the crypto-mining industry while simultaneously reiterating the organization’s dedication to blockchain technology.

The press release states that the prospective sale proceeds are anticipated to be reinvested in expanding the AI product platform, specifically its Dynamic Enablement Services.

These services will encompass new software capabilities and managed services. Data center acquisitions and the procurement of AI GPUs will be the focus of additional investments to improve infrastructure.

Northern Data’s shares experienced a 10.69% increase on the Frankfurt Stock Exchange to €35.20 after the announcement.

The prospective divestment occurred just a few months after the company reported a 22% increase in revenue in Q2, despite the challenges posed by the Bitcoin halving.

During the quarter, Norther Data generated €26 million in revenue, primarily driven by the company’s strategic investments in its data center footprint and mining facilities and its solid performance from its cloud platform.

Tether announced a partnership with Northern Data in September 2023 to concentrate on initiatives related to AI, peer-to-peer communications, and data storage solutions.

The stablecoin issuer refuted reports that it had spent $420 million on 10,000 H100 GPUs from Northern Data, but it did not disclose any figures related to the transaction.