Northern Data Group Pivots from Bitcoin Mining to AI, Considers Selling Peak Mining Subsidiary

Europe's Biggest Crypto Miner Weighs Selling Bitcoin Mining Unit For AI Ambitions

Several US and European mining firms are investing in AI infrastructure or planning to do so in the future. Europe's largest Bitcoin mining firm, Northern Data Group (NDG), is considering selling its crypto mining subsidiary as it pivots towards an ambitious artificial intelligence (AI)-driven strategy. Northern Data Explores Sale of Peak Mining According to the company's announcement , NDG has initiated negotiations with interested parties to sell its crypto-mining subsidiary, Peak Mining. NDG shared that the sale proceeds would be used to acquire new data centers, purchase GPUs, and develop its AI product platform. The German firm aims to establish itself as a pure-play provider of AI solutions through the potential sale of Peak Mining. Its new AI strategy would see the firm invest in Europe's largest Generative AI Cloud platform and a network of specially designed data centers. The European mining giant noted that the sale of Peak Mining is contingent upon the current dynamic market environment for cryptocurrencies. Rosanne Kincaid-Smith, Group COO of Northern Data Group, said the pivot towards AI is a strategic move. "Our goal is to provide a seamless AI ecosystem where customers can access intelligent, sustainable solutions that enable their businesses to harness AI's full potential and provide the tools they need to make the breakthroughs that can change the course of history." It's worth noting that Northern Data's pivot towards AI is not a sudden move, as the company has been investing in AI-focused hardware for months, a trend also observed among other major Bitcoin miners. In July, the mining company announced plans to raise $233 million through a stock issuance. NDG aimed to use the funds to boost investments in Nvidia GPUs and expand their high-performance computing infrastructure across Europe and the U.S. Crypto Miners Are Moving Towards AI NDG's pivot towards artificial intelligence is not an isolated move. In fact, major crypto miners globally are repurposing their existing data centers and mining infrastructure to tap into the AI boom. Several mining firms, including BitDigital, HIVE, Hut 8, Terawulf, and Core Scientific, have already made the pivot to AI operations or plan to expand into the space. MARA (formerly Marathon Digital) and Riot Blockchain, two prominent Bitcoin mining firms, have also shifted their focus towards AI following the halving. A recent CoinShares report notes a surge in demand for AI computing and infrastructure capable of supporting the massive workloads required for these novel machine-learning applications. Data reveals that more miners will migrate to artificial intelligence in energy-secure locations, driven by the potential for higher revenues. "Our recent mining company management discussions reveal a notable shift, with some miners increasingly turning to AI at their energy-secure sites. Although this trend is relatively new, companies like Hve and Hut 8 report 3.6% and 2.9% of their revenues from AI, respectively, with others also developing AI projects," CoinShares noted.

Tether-Owned Northern Data Considering Sale of Bitcoin Mining Firm Peak - Decrypt

Northern Data Group said Monday it is considering selling its Bitcoin mining business, Peak Mining, as it plans to bolster its AI offerings. Majority-owned by stablecoin giant Tether, the AI and high-performance computing (HPC) solutions firm is exploring the divestment of Peak Mining "to focus on the acceleration of [its] AI solutions business," Northern Data said Monday in a statement. The divestment will allow Northern Data to build out its generative AI cloud platform and portfolio of data centers, making it a "pure-play AI solutions business," the firm said. "Our goal is to provide a seamless AI ecosystem where customers can access intelligent, sustainable solutions... and provide the tools they need to make the breakthroughs that have the potential to change the course of history," Northern Data Group COO Rosanne Kincaid-Smith said Monday in a statement. It's unclear when Northern Data aims to sell Peak Mining, and how much it expects the prospective sale to fetch. Northern Data did not immediately respond to Decrypt's request for comment on the matter. The company plans to use any proceeds from Peak Mining's potential sale to invest in the development and growth of its AI product platform, including new software tools and a range of managed services, according to its statement. It is also considering pouring funds into acquiring more data centers and GPUs to power AI computing. Northern Data reported revenues of €26 million (about $28 million) and €59 million (nearly $64 million) in the second and third quarters of 2024, respectively, according to the firm's financial report released last week. The proceeds, which were not broken down by business vertical, came from the company's combined data center, cloud, and Bitcoin mining operations. The company's play to snap up data facilities comes as energy consumption is expected to surge globally, largely due to the growing use of AI-powered tools. A Goldman Sachs Research report published in May 2024 shows that data center-derived power demand will likely grow 160% by 2030, due to AI usage. Processing ChatGPT queries requires roughly 10 times the amount of electricity as generating a Google search, according to the report.

Northern Data wants to sell Peak Mining to invest in AI expansion

Northern Data Group is looking to divest its cryptocurrency mining business Peak Mining. Proceeds from the possible divestment would be sunk into developing its artificial intelligence and high-performance computing (HPC) units. Northern Data's main shareholder is stablecoin issuer Tether. Divesting if market allows Germany-based Northern Data announced on Oct. 21 that it has "resolved today to begin negotiations with interested parties" on divesting Peak Mining. The parties were not identified and Northern Data warned that divestment was not ensured and would depend on the cryptocurrency market, among other things. The divestment of Peak Mining would leave Northern Data with its Taiga cloud computing and Ardent data center branches. According to a second statement issued later the same day, possible proceeds from divesting Peak Mining would go to adding capabilities and services to its AI product platform, data center acquisition and development and purchasing additional 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 Tether owns around 46% of Northern Data stock, according to Bloomberg. Tether made its first investment in September 2023 and provided Northern Data with $610 million in debt financing (that is, a loan) in November 2023. According to trade publication The Miner Mag, Tether invested in Northern Data again in July, preserving its share of ownership in a $233-million new share issue. Related: Tether mulls lending to commodity traders: Report Also in July, Northern Data indicated it was considering an initial public offering for the first half of 2025 that would place Taiga and Ardent on the Nasdaq exchange in the United States. Northern Data is listed in Germany on the Xetra and Munich exchanges and the Tradegate Exchange. Northern Data earned 59 million euros ($64 million) in the third quarter, of which $52 million came from AI and HPC. Northern Data Group founder and CEO Aroosh Thillainathan said when those results were released on Oct. 17, "We've doubled down on our AI and HPC ambition." Tether has other outlets for its mining ambitions. CEO Paolo Ardoino stated in November that the company would construct its own mining facilities in Uruguay, Paraguay and El Salvador. It invested in Bitdeer in May. Tether expressed its interest in expanding into AI in a statement in March.

Northern Data Group Accelerates Focus on AI Solutions Business and Explores Potential Transaction of Mining Business By Investing.com

Reinvestment of potential proceeds would drive significant growth FRANKFURT AM MAIN, Germany--(BUSINESS WIRE)--Northern Data AG (ETR: NB2) (Northern Data Group, Northern Data or the Group), a leading provider of AI and High-Performance Computing (HPC) solutions, today announces that it is exploring the divestment of its heritage crypto mining business, Peak Mining. The potential divestment of Peak Mining will solidify Northern Data as a pure-play AI Solutions business, which includes Europe's largest Generative AI Cloud platform, and a portfolio of innovative, purpose-built Data Centers. Following Q3 2024 financial results, which demonstrated the third consecutive quarter of strong sequential growth in its AI Solutions business " Northern Data aims to accelerate opportunities to innovate and provide customers with the tools that they need, alongside the highest quality and most sustainable infrastructure which will power the next chapter of AI innovation. Possible proceeds from the potential divestment of Peak Mining are to be invested into the development and growth of its AI product platform " specifically its Dynamic Enablement Services, which will include new software capabilities and a range of managed services. Investments would also be made in Data Center acquisition and development, and in the purchase of additional AI GPUs. Aroosh Thillainathan, Founder and Group CEO, Northern Data Group, commented: 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. This commitment means identifying the right steward for this valuable business is of absolute importance, as we solidify our focus on powering AI innovation through best-in-class infrastructure and carbon-neutral energy systems. Rosanne Kincaid-Smith, Group COO, Northern Data Group, commented: As AI reshapes industries, Northern Data is focused on leading the charge at the forefront of the AI revolution. Our goal is to provide a seamless AI ecosystem where customers can access intelligent, sustainable solutions that enable their businesses to harness AI's full potential; and provide the tools they need to make the breakthroughs that have the potential to change the course of history. As a business we are excited about the progress in the AI landscape, its impact across industries and our role in driving that progress. About Northern Data Group: Northern Data Group is a leading provider of AI and High-Performance Computing (HPC) solutions, leveraging high-density, liquid-cooled, GPU-based technology to empower the world's most innovative organizations. Together with our partners, we are passionate about the potential of HPC to drive not only technological advancements but also societal progress.

Tether-Backed Northern Data Plans Sale of Crypto Mining Unit

Northern Data AG is examining a possible sale of its crypto mining business to free up funds for expanding its artificial-intelligence operations. The Frankfurt-listed company, whose main shareholder is stablecoin issuer Tether Holdings Ltd., would use proceeds from the sale of Peak Mining to focus on its AI solutions unit, it said in a statement Monday. Shares of Northern Data jumped as much as 12% on the news, and were up 9.8% as of 12:06 p.m. in Frankfurt.