Key Takeaways
- Peak Mining, Northern Data’s cryptocurrency mining operation, may be sold.
- The money raised from the possible sale will be used to grow Northern Data’s AI platform offerings.
- After the announcement, Northern Data’s stock increased 10.69%, hitting €35.20 on the Frankfurt Exchange.
The well-known artificial intelligence (AI) and cryptocurrency company Northern Data is thinking of selling its crypto division, Peak Mining, in order to concentrate more on AI solutions.
The business intends to use the money earned to grow its AI platform, particularly its Dynamic Enablement Services.
Northern Data’s AI Leadership at the Price of Peak Mining Dreams
The press statement stated that the money raised from the possible sale would also be used to build and buy more AI graphics processing units (GPUs) and acquire data centers.
Northern Data’s founder and CEO, Aroosh Thillainathan, stated that mining had previously been crucial to the company’s expansion. They are currently focusing on creating new AI technologies, though.
Northern Data shares increased 12% to €35.20 on the Frankfurt Stock Exchange as a result of the market’s favorable reaction to the announcement.
This comes after prior discussions about doing an initial public offering (IPO) for its data center and AI businesses, which were reportedly valued between $10 billion and $16 billion.
However, once Northern Data completely shifts to AI, selling Peak Mining outright might be the best course of action.
Northern Data’s AI Investment Is Expected to Grow Significantly
The departure of Peak Mining comes after Northern Data’s recent period of explosive growth. The company’s revenue for the third quarter (Q3) of 2024 was €59 million, a 235% increase over the same period the previous year.
Northern Data’s investments in its cloud platform and data center expansions were major contributors to this growth, and they will probably be crucial as the business shifts to high-performance computing (HPC) and artificial intelligence (AI) cloud services.
In order to further advance its AI goals, Northern Data teamed up with Tether, the company that issues the USDT stablecoin, to create projects centered on data storage, peer-to-peer communication, and AI. About 20,000 Nvidia H100 GPUs were acquired by the corporation in collaboration with the stablecoin issuer. Tether received a sizable stake in Northern Data in exchange.
Northern Data is establishing itself as a major force in the developing AI market as it moves from cryptocurrency to AI, demonstrating its flexibility and success in new markets. Its ambitious AI adventure is only getting started with the sale of Peak Mining.
