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Renowned crypto and artificial intelligence (AI) firm Northern Data is considering selling its crypto business, the Peak Mining unit, to strengthen its focus on AI solutions.
The company plans to reinvest the proceeds into expanding its AI platform, especially its Dynamic Enablement Services.
Peak Mining Dreams Sacrificed for Northern Data’s AI Leadership
According to the press release, proceeds from the potential sale would also be invested in acquiring data centers and developing and purchasing additional AI graphics processing units (GPUs).
Aroosh Thillainathan, the founder and CEO of Northern Data, said that mining was important for the company’s growth in the past. However, they are now shifting their attention to developing new AI technologies.
The market reacted positively to the news, with Northern Data shares rising 12% to €35.20 on the Frankfurt Stock Exchange.
“The Frankfurt-listed company, whose main shareholder is stablecoin issuer Tether Holdings Ltd., would use proceeds from the sale of Peak Mining to focus on its AI solutions unit.
Shares of Northern Data jumped as much as 12%”https://t.co/e2Vp7gq5Xp— Andrew ⚡️ AI 👈 (@McMimck) October 21, 2024
This development follows earlier considerations for an initial public offering (IPO) for its AI and data center operations, reportedly valuing the divisions between $10 billion and $16 billion.
However, selling Peak Mining altogether may be the most strategic decision for Northern Data’s future as it pivots fully into AI.
Northern Data’s AI Investment Poised for Major Growth
The divestment of Peak Mining comes on the heels of strong growth for Northern Data in recent months. In quarter three (Q3) financial earnings for 2024, the company earned €59 million in revenue, an increase of 235% compared to the same period last year.
A strong set of results for our Q3 2024 earnings, with revenue of EUR 59 million, up 235% year-on-year. Combined Cloud and Data Centers Q3 2024 revenue was EUR 48 million, up 296% from Q2, and more than ten times higher than Q3 2023. Read the report – https://t.co/391BCQAZZ7
— Northern Data Group (@NorthernDataGrp) October 17, 2024
This growth was largely driven by Northern Data’s investment in its cloud platform and data center expansions, which will likely play a critical role as the company pivots to high-performance computing (HPC) and AI cloud services.
Adding further momentum to its AI ambitions, Northern Data partnered with Tether, the issuer of USDT stablecoin, to develop initiatives around AI, peer-to-peer communications, and data storage. The company had purchased approximately 20,000 Nvidia H100 GPUs in partnership with the stablecoin issuer. In return, Tether earned substantial equity in Northern Data.
As Northern Data transitions from crypto to AI, it positions itself as a key player in the emerging AI space, proving its ability to adapt and thrive in new industries. The sale of Peak Mining is just the beginning of its ambitious AI journey.
