German crypto and artificial intelligence infrastructure company Northern Data on Monday filed a letter of intent for the sale of its subsidiary Peak Mining. The Germany-based company is looking to further establish itself as Europe’s leading AI service provider with the help of Tether, which issues its own stablecoin.
In a press release on October 21, Northern Data Corporation said the company may sell Peak Mining to fully focus on Europe’s largest generative AI cloud platform and other data center portfolios. . The Frankfurt-based company, led by CEO and founder Aroosh Thillainathan, emphasized the need to find suitable buyers for its mining units while continuing its commitment to blockchain technology.
Northern Data powered by Tether boosts AI with mining unit sale
In Thillainathan’s words, the proceeds from the sale will fund further development of Northern Data’s AI product platform, particularly its Dynamic Enablement Services. Therefore, this brings new software capabilities and managed services to help businesses build on AI. Northern Data is also currently setting aside cash to purchase new data centers and procure AI-optimized GPUs to further strengthen its structure.
Northern Data’s share price accordingly increased by 10.69% to EUR 35.20 during trading hours on the Frankfurt Stock Exchange. This market confidence came after the company announced a 22% increase in second-quarter revenue, but also mentioned some hurdles surrounding the upcoming Bitcoin halving. Northern Data’s quarterly revenue soared to 26 million euros as it recorded strong demand for its cloud business, data center expansion and mining services.
It was also formed in September 2023, when Tether revealed plans to launch a new project with Northern Data that would incorporate AI technology, P2P communications and data storage systems. According to news, Tether, the company behind USDT, had purchased 10,000 H100 GPUs from Northern Data for $420 million. However, Tether denied these claims but remained silent about the amount spent on the transaction.
However, the potential divestment of crypto mining would be prevalent within Northern Data’s existing strategy, as the company aims to remain a pure artificial intelligence provider. This is a characteristic of many companies that are pivoting their focus and efforts to the rapidly growing AI market.
Northern Data AG deals with digital infrastructure for cryptocurrency businesses and artificial intelligence, with operations in Europe and North America. The company operates in two segments: cloud computing services and data center management, which meets the demand for HPC solutions.
