By
Mayowa Adebajo
July 4th, 2024
Earlier in June, Northern Data launched AI Accelerator, a project designed to give startups access to its Generative AI technology and expert team.
Artificial Intelligence (AI) continues to become an important companion for the cryptocurrency industry. Many companies are integrating the technology into their operations. Computing services provider Northern Data AG recently announced plans for an initial public offering (IPO) of its AI cloud computing and data center operations in the United States.
Financial analysts estimate Northern Data’s AI and cloud unit to be worth between $10 billion and $16 billion. Interestingly, the firm might sell a minority stake to investors prior to the public offering to generate interest and capital.
The sources familiar with the matter told Bloomberg that Northern Data is now vetting potential advisors and may select banking partners in the next months. The firm plans on listing the entity on the Nasdaq in the first half of 2025.
Notably, earlier in June, Northern Data launched AI Accelerator, a project designed to give startups access to its Generative AI technology and expert team. It states:
“To unleash AI’s potential, it must be democratized and made accessible to more than just a few.”
Northern Data AG was listed in 2018 on Xetra, a trading platform operated by the Frankfurt Stock Exchange. The company’s stock saw over 5% increase on Monday, although it has experienced a 5.84% decline so far in 2024.
In November last year, Northern Data reportedly revealed its plans for an IPO of its cloud unit. It also informed analysts and investors of a separate filing for its Bitcoin mining business in the US.
The firm’s US Bitcoin mining subsidiary, Peak Mining, has been expanding its capacity. In May, it purchased a second 300-megawatt mining site to increase its hash rate and BTC production. The mining unit now has nearly 700 megawatts of mining centers in development. As a result, it is set to become one of the largest Bitcoin miners in the country.
According to its production report, Peak Mining produced 2,298 BTC production in 2023, marking an 18% year-on-year decrease. However, it reported revenues exceeding $64 million.
Growing Interest in AI
Northern Data’s recent IP announcement underscores the growing demand for AI to reshape business models. Since the launch of OpenAI’s ChatGPT, AI-based startups have reported a rise in funding.
Recently, Dogecoin lover Elon Musk announced xAI’s next-generation AI assistant, Grok 2, which is scheduled to be launched in August. Grok 2, modeled after popular AI characters such as JARVIS from Iron Man, aims to compete with OpenAI’s ChatGPT chatbot.
Moreover, last week, Gulf Energy, owned by Thailand’s second-richest individual, Sarath Ratanavadi, announced plans to invest $271 million to expand its data center facilities near Bangkok.