Northern Data plans to sell mining unit for AI growth investment

Northern Data Group has announced plans to sell its cryptocurrency mining business, Peak Mining, to focus on expanding its artificial intelligence (AI) and high-performance computing (HPC) operations. 

The German-based company revealed on October 21 that it has begun discussions with potential buyers, although the sale will depend on market conditions. 

The divestment strategy aims to redirect resources into enhancing Northern Data’s AI product platform, acquiring data centers, and purchasing additional AI graphics processing units (GPUs). 

Rosanne Kincaid-Smith, Northern Data’s chief operating officer, commented, “As AI reshapes industries, Northern Data is focused on leading the charge at the forefront of the AI revolution.” 

Tether (CRYPTO:USDT), a significant shareholder, holds approximately 46% of Northern Data’s stock. 

Bloomberg reports that Tether initially invested in Northern Data in September 2023, followed by $610 million in debt financing in November 2023. 

Tether also participated in a $233 million share issue in July 2024 to maintain its ownership stake. 

In addition to the potential divestment, Northern Data has considered listing its AI and HPC divisions, Taiga and Ardent, on the Nasdaq exchange by the first half of 2025. 

The company is already listed on Germany’s Xetra, Munich Exchange, and Tradegate Exchange. 

For the third quarter of 2024, Northern Data reported earnings of €59 million ($64 million), with $52 million attributed to its AI and HPC operations. 

Founder and CEO Aroosh Thillainathan emphasized the company’s strategic shift, stating, “We’ve doubled down on our AI and HPC ambition.” 

Tether has also expanded its mining operations beyond Northern Data, with plans to build facilities in Uruguay, Paraguay, and El Salvador. 

CEO Paolo Ardoino revealed these initiatives in November, highlighting Tether’s broader mining strategy. 

Additionally, Tether invested in Bitdeer in May to support its growing interests.