CoinDesk Report:
Northern Data announced that it is exploring the possibility of divesting its traditional cryptocurrency mining business, Peak Mining. The AI and high-performance computing (HPC) solutions provider aims to strengthen its position as a pure AI solutions business. The company now plans to capitalize on the growing demand for AI technology.
Northern Data is shifting its focus from Bitcoin to AI. According to the announcement, Northern Data is in negotiations with stakeholders regarding the potential divestment of Peak Mining. This move comes after the company reported strong growth in its AI solutions business for the third consecutive quarter in Q3 2024.
“Mining has been a fundamental part of Northern Data’s traditional and growth story. We remain supporters of blockchain technology and continue to believe in its potential,” said Aroosh Thillainathan, Founder and CEO of Northern Data Group.
Thillainathan also emphasized the importance of finding the right steward for the mining business as the company focuses on AI innovation.
Northern Data reported revenues of €26 million and €59 million for Q2 and Q3 2024, respectively. These were generated by its consolidated data centers, cloud, and Bitcoin mining business. However, the company did not provide a breakdown by market segment.
Northern Data plans to reinvest the potential proceeds into its AI product platform. According to the report, the proceeds will be specifically used to enhance its dynamically enabled services through new software functionalities and managed services.
The company also intends to acquire more data centers and purchase additional AI GPUs.
This shift aligns with Northern Data’s recent activities in the AI field. In early 2023, the company received support from Tether, issuing $233 million worth of shares. This was to fund investments in Nvidia GPUs and expand its high-performance computing capabilities in Europe and the United States.
Despite the potential divestment of its mining business, Northern Data confirmed that it expects its hash rate to reach 7.9 EH/s by the end of 2024. However, the company has ceased providing monthly production updates.
