Northern Data Group Reports Strong 2023 Financial Results and Optimistic Outlook for 2024

Northern Data : Annual Report 2023

Dear shareholders, employees and friends of Northern Data AG, We are pleased to inform you that Northern Data Group successfully took a big step forward in fiscal year 2023 by scaling its business and thus further driving its growth course as a technology company. Above all, the year was characterized by designing the infrastructure and solutions needed to unleash the potential of high-performance computing (HPC) applications. This was made possible by extensive investments in "Taiga Cloud," "Peak Mining" and "Ardent Data Centers." While Peak Mining, with its business activities in Bitcoin mining, was again responsible for the majority of revenue in the fiscal year, we were able to report significant revenue in the cloud segment (Taiga Cloud) for the first time. We fully achieved our forecast with revenue at Group level of EUR 77.5 million and adjusted EBITDA of EUR -5.5 million. At the pulse of time The global boom in generative Artificial Intelligence (AI) continued unabated in 2023. In a very short period of time, AI has developed such enormous transformative power in a wide range of economic and social areas that it is tantamount to a technical revolution. At the same time, Bitcoin consolidated its position as the leading global digital asset, grew and established itself further. The price of Bitcoin began an unprecedented rally over the course of the year and more than doubled. These megatrends go hand in hand with the enormous demand for HPC. Cloud computing - based on special graphic processing units (GPUs) - is the foundation for realizing generative AI. Moreover, Bitcoin mining - based on specialized Application Specific Integrated Circuits (ASIC chips) - would also be unimaginable without HPC.

Northern Data Group releases audited 2023 Financial Results

PRESS RELEASE / IR NEWS Northern Data Group releases audited 2023 Financial Results Frankfurt/Main - 12 July 2024 - Northern Data Group (ETR: NB2) ("Northern Data Group" or "the Group"), a leading provider of High-Performance Computing (HPC) solutions, today announces its audited 2023 financial results, following the publication of its 2023 Annual Report. The financial statements have been audited by Liebhart & Kollegen in conjunction with Harris & Trotter, a firm that specializes in working with companies in the digital asset space, and have been issued with an unqualified audit opinion from Liebhart & Kollegen. Northern Data Group achieved revenue of EUR 77.5 million, above market guidance of EUR 65 million to EUR 75 million. Adjusted EBITDA was in line with expectations at EUR -5.5 million, following significant investment in the teams and structure required to realize the potential of HPC applications. During 2023, the Group secured USD 1 billion in debt and equity funding to meet the growing demand for HPC and the Generative AI boom. Building strong foundations for a successful 2024 Following the Group's announcement of its investment strategy in late 2023, 2024 is set to be a year of significant development - with the aim of firmly positioning the Group as a leading HPC solutions provider to meet growing demand for HPC and the Generative AI boom. Northern Data Group has announced the following significant investments in 2024: Northern Data Group is expecting revenue in 2024 in the range of EUR 200 million - EUR 240 million - tripling 2023's revenue and supporting the Group's expectations of revenues of EUR 520 million to EUR 570 million in full-year 2025. Adjusted EBITDA for 2024 is expected to be in the range of EUR 50 million - EUR 80 million. Aroosh Thillainathan, Founder and CEO, Northern Data Group, commented: "2023 was an inflection point for Northern Data Group. We firmly positioned ourselves to become a leader in HPC, building the much-needed team and structure required to power growing demand for HPC and the Generative AI boom. In 2024 we are investing strategically across our business to build the foundation required to provide cutting-edge organizations with HPC solutions that optimize performance. And we continue to build on and expand our strategic partnerships. We are well capitalized with significant cash on hand, and we expect to triple our revenues this year as we continue to scale." 2023 results at a glance The complete 2023 Annual Report can be found at Northern Data's website. 1) Adjusted EBITDA corresponds to EBITDA adjusted for non-cash and non-recurring items, which currently include (i) stock option plan expenses, (ii) lawsuits and other one-off legal fees, (iii) systems implementation, (iv) trading losses/gains from cryptocurrency, (v) restructuring costs and (vi) impairment losses related to third party bankruptcy and (vii) investment banking fees. About Northern Data Group: Northern Data Group (ETR: NB2) is a leading provider of High-Performance Computing (HPC) solutions to businesses and research institutions, utilizing GPU- and ASIC-based solutions. Our flexible compute power fuels innovation in our three core business platforms: Taiga Cloud, Ardent Data Centers, and Peak Mining. Through our HPC solutions, we pioneer ambitious computing innovation that drives progress in the AI, ML and Generative AI industries. Our close collaboration with industry-leading manufacturers including Gigabyte, AMD, and NVIDIA is fundamental to the acceleration of innovation across sectors including life sciences, financial services, and energy. Investor Relations: This IR release contains forward-looking statements. These statements are based on the current views, expectations, assumptions, and information of the management, and are based on information currently available to the management. Forward-looking statements shall not be construed as a promise for the materialization of future results and developments and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those described in such statements due to, among other things, changes in the general economic and competitive environment, risks associated with capital markets, currency exchange rate fluctuations, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, affecting the Company, and other factors. Neither the Company nor any of its affiliates assumes any obligations to update any forward-looking statements.

Bitcoin Miner Northern Data Predicts Robust Revenue Growth Amid AI Boom

The Bitcoin miner now expects its revenue to hit as much as €240 million in 2024. The leading Bitcoin miner, Northern Data Group, has released its 2023 financial results, catching the attention of market participants. Notably, the firm has reported robust revenue growth for 2023, exceeding its previous forecast. In addition, the firm predicts a threefold revenue increase in 2024 and a significant surge in 2025, driven by its expansion into high-performance computing and AI cloud services. Northern Data AG, based in Frankfurt, anticipates revenue to more than triple this year as it broadens its scope in high-performance computing. The Bitcoin miner projects sales between €200 million ($218 million) and €240 million for the full year, up from €77.5 million in 2023. Notably, this impressive growth follows last year's revenue, which surpassed the company's initial forecast of €75 million. Besides, Northern Data is also considering a U.S. listing for its AI cloud computing and data center businesses. This move could further enhance its market presence and investor appeal. Despite recent legal issues involving former employees alleging financial misrepresentation, the crypto mining firm has firmly denied these claims. Meanwhile, Northern Data primarily focused on mining Ether earlier. However, Ethereum's software update in September 2022 altered transaction validation methods, impacting Ether miners' revenue. This shift has led Northern Data to diversify its operations and capitalize on emerging opportunities in artificial intelligence (AI) and high-performance computing. Also Read: Crypto Market Crash Fails To Dent VanEck CEO's Bullish Outlook The Frankfurt-based crypto miner's expansion into AI and high-performance computing is expected to drive substantial revenue growth in the coming years. Notably, the Bitcoin miner also forecasts 2025 revenue to range between €520 million and €570 million, reflecting its confidence in the booming AI sector. Meanwhile, the firm's strategic pivot comes at a time when AI is transforming various industries, creating new avenues for growth. By leveraging its expertise in high-performance computing, Northern Data aims to position itself at the forefront of this technological revolution. This shift not only diversifies its revenue streams but also mitigates risks associated with the volatile cryptocurrency market. In addition, Northern Data's growth trajectory underscores the potential of integrating AI and high-performance computing with traditional crypto-mining operations. As the demand for AI-driven solutions increases, companies like Northern Data are likely to benefit.