Northern Data AG is considering selling its Peak Mining division to refocus on artificial intelligence solutions.
Northern Data, a German-listed cryptocurrency and artificial intelligence infrastructure company backed by stablecoin issuer Tether, announced on Monday that it is considering selling its Peak Mining division, which would mean it would not be a pure provider of AI. This move is aimed at solidifying the company’s position. Solution.
The potential sale of Peak Mining is consistent with Northern Data’s strategy to focus on Europe’s largest generative AI cloud platform and data center portfolio, the Frankfurt-based company said in an October 21 press release. He said that
Allush Thillainathan, CEO and Founder of Northern Data, reiterated the company’s commitment to blockchain technology, while stressing the importance of identifying the right manager for a crypto mining operation. .
“Mining is a fundamental part of Northern Data’s heritage and growth story. We continue to support blockchain technology and believe in its potential.”
Allush Thillainathan
Proceeds from the potential sale are expected to be reinvested into expanding the AI product platform, specifically its dynamic enablement services, including new software capabilities and managed services, the press release states. Additional investments will target data center acquisitions and AI GPU procurement to further strengthen our infrastructure.
Following the announcement, Northern Data’s share price soared 10.69% to 35.20 euros on the Frankfurt Stock Exchange. The potential sale comes months after the company reported a 22% revenue increase in the second quarter despite challenges from the Bitcoin halving. Norther Data generated revenues of €26 million during the quarter, supported by strong performance in its cloud platform and strategic investments in data center footprint and mining facilities.
In September 2023, Tether announced a partnership with Northern Data to focus its efforts on AI, peer-to-peer communications, and data storage solutions. The stablecoin issuer did not disclose figures related to the transaction, but refuted reports suggesting it spent $420 million on 10,000 H100 GPUs from Northern Data.
