Northern Data Group is stepping away from the cryptocurrency mining scene to redirect its resources towards the artificial intelligence market.
Northern Data Group, a leading provider of artificial intelligence (AI) and High-Performance Computing (HPC) solutions, is planning to wind down its crypto mining business Peak Mining to focus on the AI sector. The company said it is currently exploring the potential sale of the unit to raise funds to support its artificial intelligence ventures.
The Frankfurt-listed said it is leaving crypto mining to focus on the AI market after releasing its financial earnings report for the last quarter which “demonstrated the third consecutive quarter of strong sequential growth in its AI solutions business.” The decision to exit the crypto mining sector is seen as a move to capitalize on the increasing demand for AI technologies.
Transitioning to a Fully AI-Focused Business
In an official press release on Monday, Northern Data disclosed the potential sale of Peak Mining will transform it into a fully AI-focused business that encompasses Europe’s largest Generative AI Cloud platform, and a portfolio of innovative, purpose-built Data Centers.
The firm intends to channel the proceeds from the sale into further developing its AI product suite, Dynamic Enablement Services. The entity is expected to provide scalable, sustainable infrastructure for AI applications, driving innovation across industries.
Northern Data also plans to use part of the funds to acquire additional data centers, though it has not disclosed whether any negotiations are currently underway.
In addition, the company aims to invest in more Graphics Processing Units (GPUs) to bolster its AI capabilities.
Still Committed to Blockchain Despite Crypto Mining Exit
Despite the potential sale of Peak Mining, Northern Data remains supportive of blockchain technology and its long-term potential. Aroosh Thillainathan, the company’s founder and CEO, said that mining cryptocurrencies like Bitcoin (BTC) over the years played a crucial role in the company’s growth trajectory.
“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. This commitment means identifying the right steward for this valuable business is of absolute importance, as we solidify our focus on powering AI innovation through best-in-class infrastructure and carbon-neutral energy systems,” he said.
The German-based company is already backed by reputable firms in the crypto industry including Tether, the issuer of the USDT stablecoin with more than $120 billion in market capitalization, according to data from CoinMarketCap.
Previous IPO Plans
Before the recent development, Northern Data was reportedly considering an initial public offering (IPO) for its divisions, including the mining unit, in July 2024. At the time, sources familiar with the matter suggested that Northern Data was exploring valuations between $10 billion and $16 billion for the entities.
This is not the first time Northern Data has contemplated taking its mining operations public. Back in February 2021, the company had hinted at the possibility of an IPO for Peak Mining, but those plans were eventually shelved and it became a thing of the past.
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