Northern Data to Divest Mining Business and Focus on AI

The German public mining company Northern Data is considering the sale of its bitcoin mining division, Peak Mining.

According to a press release, the potential transaction would strengthen the firm’s position as a specialist in artificial intelligence solutions.

The company referred to its third-quarter financial results, which showed consistent growth in its cloud AI computing business for the third consecutive period.

A strong set of results for our Q3 2024 earnings, with revenue of EUR 59 million, up 235% year-on-year. Combined Cloud and Data Centers Q3 2024 revenue was EUR 48 million, up 296% from Q2, and more than ten times higher than Q3 2023. Read the report — https://t.co/391BCQAZZ7

— Northern Data Group (@NorthernDataGrp) October 17, 2024

Northern Data reported revenue of €59 million for July-September, with 80% of the amount generated by the AI division.

The company also confirmed plans for its mining operations in Texas to achieve a hashrate of 7.9 EH/s. In the first quarter, cryptocurrency production amounted to 447 BTC, but the firm has since ceased publishing production data.

Northern Data intends to invest the proceeds from the potential sale of Peak Mining into the development and expansion of AI products, as well as acquiring new data centers and additional graphics processors.

“Mining is a foundational part of Northern Data’s legacy and growth story. We remain supporters of blockchain technology and continue to believe in its potential. This means finding the right steward for this valuable business is of utmost importance, as we strengthen our focus on supporting AI innovation,” commented the company’s founder and CEO, Aroosh Thillainathan.

In November 2023, the German company entered into an agreement with Tether for credit financing amounting to €575 million. The funds were primarily intended for acquiring equipment for the AI division in Europe.

According to Yahoo!Finance, Northern Data’s shares on the Deutsche Börse Xetra have risen by more than 63% over the past six months.

Bernstein has concluded that bitcoin miners who also engage in AI outperform competitors focused solely on cryptocurrency mining.