German Bitcoin miner and cloud computing firm Northern Data AG is reportedly planning an initial public offering (IPO) for two of its entities in the United States, aiming for a valuation of up to $16 billion.
Plans for a US Listing
According to a July 1 report from Bloomberg, which cited unnamed sources familiar with the matter, executives at Northern Data — Europe’s largest Bitcoin miner by market cap — have been in discussions with several advisers regarding an IPO. They are targeting a potential listing in the first half of 2025.
Under the current plan, Northern Data intends to list its “Taiga” and “Ardent” entities on the Nasdaq, representing its cloud computing and data center divisions, respectively. Additionally, Northern Data’s Bitcoin (BTC) mining business, Peak Mining, could also be listed separately, as the firm mentioned to analysts and investors back in November.
Northern Data had previously considered an IPO for its cryptocurrency mining business in the U.S. in February 2021, though those plans did not materialize. The current valuation suggested by banks ranges between $10 billion and $16 billion, but deliberations are ongoing, and plans could change. There is also the possibility that Northern Data may decide against pursuing the IPO.
Northern Data did not immediately respond to Cointelegraph’s request for comment.
Company Background and Divisions
Founded in Germany in 2009 as Northern Bitcoin AG, Northern Data Group is one of the earliest Bitcoin mining firms. Today, the company operates three business divisions: Taiga, Ardent, and Peak Mining. The latter is its U.S. Bitcoin mining unit, currently developing 700 megawatts of high-performance computing data centers, which are expected to eventually provide up to 40 exahashes.
For a time, Peak Mining focused on mining operations on the Ethereum network. However, following Ethereum’s transition from proof-of-work to proof-of-stake in September 2022, the focus shifted back to Bitcoin.
Expansion into AI
Northern Data is among several Bitcoin miners expanding into the AI sector as profit margins in the mining industry continue to thin. Other Bitcoin mining firms, such as Core Scientific, TeraWulf, and Hut 8 Corp, have also followed a similar trajectory in recent months.
In November 2023, Northern Data secured $610 million in debt financing from stablecoin issuer Tether. This funding is intended to support investments in its mining and AI businesses.
Table: Northern Data’s Business Divisions and Expansion Plans
| Division | Focus Area | Key Developments |
|---|---|---|
| Taiga | Cloud Computing | Targeting IPO on Nasdaq in first half of 2025 |
| Ardent | Data Centers | Targeting IPO on Nasdaq in first half of 2025 |
| Peak Mining | Bitcoin Mining | Developing 700 MW of high-performance computing data centers, expected to provide up to 40 exahashes |
| AI Expansion | Artificial Intelligence | Expanded into AI sector to diversify and enhance profit margins |
The move towards AI by Bitcoin miners reflects a broader trend in the industry. As mining becomes less profitable due to increased competition and rising energy costs, companies are seeking new avenues for revenue. The integration of AI can provide additional computational power and open up new markets for these firms.
Analysts suggest that the potential IPO could significantly bolster Northern Data’s financial standing, providing the necessary capital to further invest in its expanding operations. However, the success of the IPO will depend on market conditions and investor appetite for tech and crypto-related stocks at the time of the offering.
Northern Data’s planned IPO highlights its ambition to solidify its presence in the U.S. market and expand its operations in cloud computing and data centers. With a substantial valuation target and a strategic focus on both Bitcoin mining and AI, Northern Data is positioning itself for significant growth in the coming years.
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