Northern Data Mulls considering winding down Bitcoin mining operation to focus on AI

Northern Data has announced that it is exploring the divestment of its heritage crypto mining business, Peak Mining.

The provider of AI and high-performance computing (HPC) solutions aims to strengthen its position as a pure-play AI solutions business. The firm now plans to capitalize on the growing demand for artificial intelligence technologies.

Northern Data is shifting focus from Bitcoin to AI

According to the announcement, Northern Data is in negotiations with interested parties regarding a possible divestment of Peak Mining.

This move comes after the company reported strong sequential growth in its AI Solutions business for the third consecutive quarter in Q3 2024.

“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,” Aroosh Thillainathan, Founder and Group CEO of Northern Data Group, stated.

Thillainathan also emphasized the importance of finding the right steward for the mining business as the company focuses on AI innovation.

Northern Data reported revenues of €26 million and €59 million for the second and third quarters of 2024, respectively. This was generated from its combined data center, cloud, and Bitcoin mining operations. However, the company did not provide a breakdown by segment.

Northern Data to reinvest in AI infrastructure

Northern Data plans to invest potential proceeds from the divestment into its AI product platform. As per the reports, the proceeds will be specifically enhancing its Dynamic Enablement Services with new software capabilities and managed services.

The company also intends to acquire additional data centers and purchase more AI GPUs.

This shift aligns with Northern Data’s recent activities in the AI space. Earlier in 2023, the company received backing from Tether for a $233 million stock issuance. This was to fund investments in Nvidia GPUs and expand its high-performance computing capabilities in Europe and the U.S.

Despite the potential divestment of its mining operations, Northern Data affirmed that it remains on track to reach a hashrate of 7.9 EH/s by the end of 2024. However, the company has ceased providing monthly production updates.