Bitcoin Miner Northern Data Predicts Robust Revenue Growth Amid AI Boom | CoinGape
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.
“Mining is a foundational part of Northern Data’s heritage and growth story. We remain supporters of blockchain technology and continue to believe in its potential.” – Aroosh Thillainathan
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.
Marissa Mayer proposes a business model for AI chatbots funded by advertising, highlighting potential opportunities for monetization Marissa Mayer possesses…
By exploiting two new zero-day vulnerabilities discovered in widely used software developed by cybersecurity behemoth Palo Alto Networks, malicious hackers…
Wiz, a cybersecurity company that has garnered significant attention, is acquiring a substantial amount of cloud security technology in order…
Zepto raises $350 million in its third funding round in six months to bolster its position against rivals ahead of…
After a test campaign with over 25 million transactions from two million wallets, Polygon-based Prom launched its mainnet to boost…
As its test program advances, SpaceX has executed its second agreement to transport a cargo to the Moon via a…