German crypto and artificial intelligence infrastructure firm Northern Data submitted a letter of intent on Monday regarding the sale of its subsidiary, Peak Mining. The Germany-based company, backed by Tether, which issues its own stablecoins, is looking to further establish itself as the leading AI services provider in Europe.
In its Oct 21 press release, Northern Data Corporation mentioned that the company has a potential sale of Peak Mining to enable it to entirely shift its focus on Europe’s largest Generative AI cloud platform and other data center portfolio. Frankfurt-based firm, headed by CEO and founder Aroosh Thillainathan, stressed the need to find a suitable buyer for the mining unit while remaining committed to blockchain technologies.
Tether-Backed Northern Data to Boost AI with Mining Unit Sale
To quote Thillainathan, the money from the sale will fund further development of Northern Data’s AI product platform, especially Dynamic Enablement Services. It will, therefore, bring new software enablements and managed services to enable the company to build on AI. Also, Northern Data is now setting aside cash to buy new data centers and procure AI-optimized GPUs to enhance its structure further.
Shares of Northern Data rose accordingly to €35.20 during the Frankfurt Stock Exchange trading session by 10.69%. This market confidence comes after the company announced a 22% increase in its Q2 revenue, although it also described some hurdles touching on the coming Bitcoin halving. Quarterly revenue soared to €26m as Northern Data recorded a high demand for its cloud business, expansion of data centers, and mining services.
It was also established in September 2023 when Tether revealed it was planning to form new projects with Northern Data that incorporated AI technology, P2P communication, and data storage systems. According to the news, Tether, the company behind USDT, had bought 10,000 H100 GPUs from Northern Data for $420 million. However, Tether denied these claims, though it was silent about the money spent on the deal.
However, potential divestiture of crypto mining would be prevalent within Northern Data’s existing strategy as the firm looks to remain a pure-play artificial intelligence provider, which is characteristic of many businesses as they pivot their focus and efforts to the quickly growing AI markets.
Northern Data AG deals with the digital infrastructure for the cryptocurrency business and artificial intelligence and operates in Europe and Northern America. The firm operates in two segments: cloud computing services and data center management to meet demand for HPC solutions.
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