As a seasoned crypto investor with over two decades of experience under my belt, I find Northern Data AG’s decision to explore the sale of its Peak Mining unit intriguing. Having witnessed numerous shifts and evolutions within the crypto landscape, it’s clear that companies must adapt to survive and thrive.
Northern Data AG is looking into selling its Peak Mining division to concentrate more on artificial intelligence technologies.
On Monday, Northern Data, a German-listed firm specializing in crypto and artificial intelligence infrastructure (and supported by Tether, a stablecoin issuer), disclosed its intention to sell Peak Mining, one of its units. This decision is intended to strengthen Northern Data’s role as a dedicated provider of AI solutions, focusing solely on this area.
According to a press release on October 21st, the company based in Frankfurt has suggested that the possible sale of Peak Mining is consistent with Northern Data’s strategic goal of concentrating on Europe‘s most extensive Generative AI cloud system and a collection of data centers.
As a researcher, I’d like to highlight the significance I place on finding an appropriate caretaker for our cryptocurrency mining operations, all the while reinforcing our unwavering dedication to the revolutionary technology of blockchain.
Northern Data’s roots and expansion are deeply tied to mining. We stay advocates for blockchain technology, maintaining our faith in its promising future.
Aroosh Thillainathan
The money from a possible sale is anticipated to be put back into growing our AI product platform, with a focus on strengthening its Dynamic Enablement Services. This expansion involves developing new software features and managed services. Moreover, extra funds will be allocated for purchasing data centers and AI graphics processors (GPUs), aiming to boost our infrastructure further. As stated in the press release.
After the recent announcement, I observed a significant upward trend in Northern Data’s shares, reaching €35.20 – an impressive 10.69% surge on the Frankfurt Stock Exchange. This positive movement comes amidst speculation of a potential divestment, just a few months following the company’s Q2 report which showed a remarkable 22% revenue increase despite the Bitcoin halving-related challenges. In the said quarter, Northern Data managed to generate €26 million in revenue, primarily driven by the robust performance of its cloud platform and strategic investments in expanding its data center network and mining facilities.
In September 2023, Tether revealed a partnership with Northern Data, aiming to work on projects concerning AI, peer-to-peer messaging, and data storage systems. The company issuing the stablecoin did not provide any financial details regarding the agreement but denied rumors stating they had invested $420 million for 10,000 H100 GPUs from Northern Data.
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2024-10-21 14:24