Northern Data Group is considering selling its cryptocurrency mining business Peak Mining. Proceeds from the potential sale would be spent on developing artificial intelligence and high performance computing (HPC) units. Northern Data’s main shareholder is stablecoin issuer Tether.
Sell if market allows
Germany-based Northern Data announced on October 21 that it had “resolved today to begin negotiations with interested parties” regarding the sale of Peak Mining. The parties were not identified and Northern Data warned that the sale was not certain and would depend on the crypto market, among other things.
The sale of Peak Mining will leave Northern Data with Taiga cloud computing and Ardent data center branches. A second statement released later the same day said the potential proceeds from the sale of Peak Mining would include the addition of features and services to the AI product platform, the acquisition and development of data centers, and additional AI graphics. The money will be used to purchase processing units (GPUs).
Roseanne Kincaid-Smith, Chief Operating Officer, Northern Data Group, said:
“As AI reshapes industries, Northern Data is committed to staying ahead at the forefront of the AI revolution.”
Tether owns a big chunk
Tether owns about 46% of Northern Data, according to Bloomberg. Tether made its first investment in September 2023 and provided $610 million in debt financing to Northern Data in November 2023. Tether invested again in Northern Data in July and maintained its share, according to industry publication The Miner Mag. Takes ownership of $233 million in new stock issuance.
Also in July, Northern Data said it was considering an initial public offering in the first half of 2025 that would see Taiga and Ardent listed on the U.S. Nasdaq exchange. Northern Data is listed on Germany’s Zetra Exchange, Munich Exchange and Tradegate Exchange.
Northern Data earned €59 million ($64 million) in the third quarter, of which $52 million came from AI and HPC. “We have doubled down on our AI and HPC ambitions,” Allush Thillainathan, founder and CEO of Northern Data Group, said when these results were announced on October 17. ” he said.
Tether has other ways to realize its mining ambitions. CEO Paolo Ardoino said in November that the company would build its own mining facilities in Uruguay, Paraguay and El Salvador. In May, it invested in Bitdeer.
Tether expressed interest in expanding into AI in a statement in March.
