Northern Data AG, a German infrastructure company specializing in cryptocurrency and artificial intelligence, announced on Monday that it is exploring a potential sale of its Peak Mining unit to refocus its efforts to allocate funds for expanding its artificial intelligence operations.
Following the announcement, shares of Northern Data surged by as much as 12%, stabilizing at a 9.8% increase by 12:06 p.m. in Frankfurt.
Northern Data’s Bold Move: Selling Peak Mining to Fuel AI Ambitions?
The company mentioned that the sale’s feasibility is closely linked to the “current dynamic market environment” for cryptocurrencies.
Bitcoin prices have risen over 60% this year, approaching the all-time high of $73,798 in March.
This uptick in value comes at a crucial time, as Bitcoin miners have faced challenges since April’s Bitcoin halving, which halved their primary revenue stream.
In response to these challenges, some mining companies, including Northern Data, have switched their high-performance computing resources to focus on artificial intelligence.
The sale of Peak Mining would provide essential funds to strengthen Northern Data’s AI solutions unit. This unit features a generative AI cloud platform that assists businesses in launching their AI-powered applications.
“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,” Northern Daya CEO and founder Aroosh Thillainathan stated.
The company plans to enhance its Dynamic Enablement Services, introducing new software capabilities and managed services to meet the evolving demands of the AI market.
Additionally, Northern Data will target investments in data center acquisitions and procure advanced AI GPUs to bolster its infrastructure.
Northern Data Shares Surge 10.69% After Strong Q2 Performance
Following recent announcements, Northern Data shares surged by 10.69% on the Frankfurt Stock Exchange, reaching €35.20.
This rise follows a strong Q2 performance, with the company reporting a 22% revenue increase, generating €26 million.
The growth is attributed to high activity in its cloud platform and investments in data centers and mining operations, despite challenges from the recent Bitcoin halving.
In September 2023, Tether announced a collaboration with Northern Data, focusing on artificial intelligence (AI), peer-to-peer communications, and data storage solutions.
Although Tether refuted claims of a $420 million investment for 10,000 H100 GPUs from Northern Data, it has been accumulating shares in the company for over a year. Reports from the Financial Times claim that Tether is the majority owner of Northern Data, owning 51% of the stock.
Northern Data has projected a tripling of its full-year revenue in 2024, driven by increased demand for AI computing services. The company is also exploring a U.S. listing for its AI cloud computing and data center businesses, with a potential valuation of up to $16 billion.
The post Tether-Owned AI Company Considers Selling Bitcoin Mining Arm appeared first on Cryptonews.
#BitcoinNews #AI #BitcoinMining #Tether [Source: CryptoNews]