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

European Bitcoin mining company Northern Data AG has announced plans to raise €214 million in a 20% capital increase by issuing 10.7 million new shares.

German Bitcoin (BTC) mining company Northern Data AG is set to strengthen its operations with a significant capital increase that is expected to increase its financial reserves by approximately €214 million.

The Frankfurt-based company announced in a July 15 press release that it plans to issue 10,699,446 new bearer shares, equivalent to 20% of its existing share capital. The move is expected to accelerate the expansion of the company’s cloud platform and physical data center presence across Europe and the US.

The company also aims to use the capital raised to develop its infrastructure to support developments in high-performance computing and generative artificial intelligence, the press release said.

“Management believes these investments will support the company’s leadership position in high-performance computing by creating the infrastructure needed to support productive AI innovation.”

North Data

The company says the new shares will be issued at a price of €20 per share, representing a premium of around 1.7% to the volume-weighted average price on Xetra trading prior to the announcement. Northern Data also reassured its shareholders that “shareholders who do not participate in the capital increase will not be economically diluted.”

To facilitate the approach, the Bitcoin miner plans to use existing authorized capital, excluding shareholders’ statutory subscription rights. As a result, the capital increase will be implemented in two stages: initially subscribed by major shareholder Tether and an “indirectly owned entity” by CEO Aroosh Thillainathan, and then proportionally among other major shareholders who choose to participate.

The capital injection announcement follows Northern Data’s recent forecast to triple its revenue by 2024 and highlights its commitment to expanding its high-performance computing solutions. According to its audited 2023 financial results seen by Crypto.news, the company expects sales to reach €240 million this year, a three-fold increase on the previous year.