Tether-backed Northern Data explores sale of crypto mining arm to boost AI growth

Northern Data AG is exploring the sale of its Peak Mining unit to refocus on artificial intelligence solutions.

Northern Data, a Germany-listed crypto and AI infrastructure company backed by stablecoin issuer Tether, announced on Monday that it is exploring the sale of its Peak Mining unit, a move aimed at solidifying the company’s position as a pure-play provider of AI. solutions.

In an Oct. 21 press release, the Frankfurt-based company said the potential sale of Peak Mining is in line with Northern Data’s strategy to focus on Europe’s largest Generative AI cloud platform and portfolio of data centers.

Northern Data CEO and founder Aroosh Thillainathan emphasized the importance of identifying a suitable manager for the crypto mining business, while reaffirming the company’s commitment to blockchain technology.

“Mining is a fundamental part of Northern Data’s legacy and growth story. “We remain supporters of blockchain technology and continue to believe in its potential.”

Aroosh Thillainathan

Proceeds from the potential sale are expected to be reinvested in the expansion of the AI ​​product platform, specifically Dynamic Enablement Services, which will include new software capabilities and managed services, the press release said. Additional investments will target data center acquisitions and the purchase of AI GPUs to further develop the infrastructure.

Following the announcement, Northern Data’s shares rose by 10.69% to 35.20 euros on the Frankfurt Stock Exchange. The potential liquidation comes just months after the company reported 22% revenue growth in the second quarter despite the challenges posed by the Bitcoin halving. Norther Data generated revenue of €26 million during the quarter, thanks to the strong performance of its cloud platform and strategic investments in its data center footprint and mining facilities.

In September 2023, Tether announced a collaboration with Northern Data to focus on initiatives around artificial intelligence, peer-to-peer communications, and data storage solutions. The stablecoin issuer did not disclose any figures on the deal but denied reports from Northern Data suggesting it spent $420 million on 10,000 H100 GPUs.