Northern Data AG, a German-listed company specializing in crypto and artificial intelligence infrastructure, is considering selling its Peak Mining unit to redirect its focus towards AI solutions. The company, which is supported by stablecoin issuer Tether, made the announcement on Monday, highlighting its intention to consolidate its position as a provider of AI technologies.
The potential sale of Peak Mining is part of Northern Data’s strategy to concentrate on Europe’s largest Generative AI cloud platform and a range of data centers. Aroosh Thillainathan, the CEO and founder of Northern Data, stressed the importance of finding the right buyer for the mining business while reaffirming the company’s commitment to blockchain technology.
Thillainathan stated, “Mining is a foundational part of Northern Data’s heritage and growth story. We remain supporters of blockchain technology and continue to believe in its potential.”
The proceeds from the sale will be reinvested in expanding the AI product platform, particularly focusing on Dynamic Enablement Services, which will include new software capabilities and managed services. Additionally, investments will be made in acquiring data centers and AI GPUs to enhance the company’s infrastructure.
Following the announcement, Northern Data’s shares saw a significant increase of 10.69% on the Frankfurt Stock Exchange, reaching €35.20. This potential divestment comes after the company reported a 22% revenue growth in Q2, despite challenges stemming from the Bitcoin halving. Northern Data generated €26 million in revenue during the quarter, driven by strong performance from its cloud platform and strategic investments in data centers and mining facilities.
In September 2023, Tether announced a partnership with Northern Data to focus on AI initiatives, peer-to-peer communications, and data storage solutions. While the exact details of the collaboration were not disclosed, Tether denied reports suggesting it had purchased $420 million worth of H100 GPUs from Northern Data.
This move towards selling its mining unit aligns with Northern Data’s goal of positioning itself as a key player in the AI industry. By reallocating resources towards AI solutions, the company aims to capitalize on the growing demand for innovative technologies in the market.