Bitcoin miner Northern Data to issue 10.7m new shares to boost cloud platform expansion

by

As a seasoned crypto investor with a keen interest in Bitcoin mining and high-performance computing, I view Northern Data AG’s €214 million capital increase as a strategic move that will significantly boost the company’s capabilities and competitive edge in the rapidly evolving digital assets industry.

Northern Data AG, a Bitcoin mining firm based in Europe, intends to generate €214 million by increasing its capital by 20%. This will involve the issuance of approximately 10.7 million new shares.

Northern Data AG, a leading Bitcoin mining company based in Germany, plans to expand its business by raising a substantial amount of capital, around €214 million, which will significantly pad its financial resources.

The Frankfurt-based corporation announced in a press release on July 15 its intention to issue 10,699,446 new bearer shares, representing a 20% increase in its existing share capital. This action aims to support the growth of the company’s cloud platform and extend its physical data center infrastructure across Europe and the United States.

The statement goes on to reveal that the business intends to employ the gathered funds to upgrade its infrastructure, facilitating progress in the realms of high-speed computing and innovative artificial intelligence.

“According to management, investing in this infrastructure will help our company maintain its leading role in high-performance computing and fuel innovative advancements in generative AI technology.”

Northern Data

The company announces that new shares will be sold for €20 each, representing a 1.7% rise above the previous average trading price on Xetra before the announcement. Northern Data also guarantees its existing shareholders that their economic value won’t decrease if they don’t take part in the capital increase.

The Bitcoin miner intends to use pre-authorized funds, excluding the mandatory investments of shareholders, to make the process easier. Consequently, the capital expansion will occur in two parts: firstly, with a major shareholder, Tether, and an entity controlled by CEO Aroosh Thillainathan subscribing; secondly, other significant investors will follow proportionately.

As a researcher, I’ve come across Northern Data’s recent announcement of a significant capital infusion into their business. This investment comes on the heels of their projection to triple their revenue by 2024, underscoring their dedication to advancing high-performance computing solutions in the market. Based on the audited financial results I’ve reviewed for 2023, which were obtained from crypto.news, Northern Data expects their sales to reach as much as €240 million this year. This represents a threefold increase compared to their sales figures from the previous year.

Read More

2024-07-15 11:50