Northern Data owned by Tether contemplates abandoning Bitcoin mining

Coin World News Report:
Northern Data, the artificial intelligence computing company owned by Tether, has announced that it is considering exiting the Bitcoin mining business. Earlier this year, it aimed to achieve a hash rate of 7.9 exahashes per second (EH/s).
On October 17th, Northern Data released its financial performance for the third quarter and stated in a press release that its mining business is still expected to open new locations in Corpus Christi, Texas, which is crucial for its hash rate target.
However, four days later, the company revealed that it is exploring “potential transactions for its mining business,” specifically mentioning that it is “exploring the divestiture of its traditional cryptocurrency mining business Peak mining.” As a result, Northern Data will become “a pure play AI solution business.”
Northern Data stated that the proceeds from this transaction will be reinvested in its AI-focused business line.
[img]
Third-quarter demonstration from Northern Data.
Read more:
Tether: Ten years, 1 trillion USDT, still unaudited.
This decision may be due to the decline in Northern Data’s mining revenue proportion, which dropped from 74% at the beginning of 2024 to 20% in the third quarter. Additionally, mining revenue decreased from 22 million euros in the first quarter to 12 million euros in the third quarter.
While Northern Data has considered this pivot, Tether does have other investments in the Bitcoin mining sector, including BitDeer, Volta Energy, and 2040 Energy.
Northern Data has been involved in a dispute with former executives over allegations of securities fraud. The company firmly denies any wrongdoing.
Any tips? Email us or ProtonMail us. For more information, follow us on Blue Sky, Google News, or subscribe to our YouTube channel.