As a seasoned crypto investor with over a decade of experience, I’ve witnessed the rise and fall of numerous digital assets, as well as the evolution of various blockchain-related businesses. The recent announcement by Northern Data Group to possibly divest its cryptocurrency mining business Peak Mining has piqued my interest.
Northern Data Group plans to sell off its cryptocurrency mining operation, Peak Mining. The funds generated from this potential sale could be channeled towards strengthening their artificial intelligence and high-performance computing sectors. Notably, the major stakeholder in Northern Data is Tether, a company known for issuing stablecoins.
Divesting if market allows
Germany-based Northern Data revealed on October 21st that it intends to initiate talks with potential suitors regarding the sale of Peak Mining. The parties have yet to be disclosed, and Northern Data cautioned that the sale is not guaranteed and will hinge on various factors including the cryptocurrency market.
After shedding Peak Mining, Northern Data will retain its Taiga cloud computing and Ardent data center divisions. A subsequent statement revealed that the funds generated from selling Peak Mining might be used to enhance capabilities and services on its AI product platform, expand and improve data centers, and acquire more AI graphics processing units (GPUs).
Northern Data Group chief operating officer Rosanne Kincaid-Smith said:
“As AI reshapes industries, Northern Data is focused on leading the charge at the forefront of the AI revolution.”
Tether owns a big chunk
Approximately 46% of Northern Data’s stock is held by Tether, as reported by Bloomberg. Tether made its initial investment in September 2023 and extended a loan worth $610 million to Northern Data in November 2023. Additionally, according to The Miner Mag, Tether further invested in Northern Data in July, maintaining its ownership stake following a new share issue valued at $233 million.
In addition, Northern Data announced plans for an initial public offering (IPO) in July 2025, which would potentially list Taiga and Ardent on the Nasdaq stock exchange in the U.S. Currently, Northern Data is traded on German exchanges such as Xetra, Munich, and Tradegate Exchange.
In the third quarter, Northern Data managed to bring in a revenue of 59 million euros, which is equivalent to approximately $64 million. Out of this total, around $52 million was generated from their activities in Artificial Intelligence (AI) and High Performance Computing (HPC). When announcing these results on October 17th, Northern Data Group’s founder and CEO Aroosh Thillainathan stated that they had increased their commitment towards achieving success in AI and HPC.
Tether has alternative avenues for pursuing its mining aspirations. In a statement made in November, CEO Paolo Ardoino revealed that the company plans to establish its own mining operations in Uruguay, Paraguay, and El Salvador. Furthermore, it invested in Bitdeer back in May.
Tether expressed its interest in expanding into AI in a statement in March.
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2024-10-21 22:07