Northern Data considers ending Bitcoin mining business focusing on artificial intelligence

Coinworld reported:
Northern Data announced that it is exploring the divestment of its traditional cryptocurrency mining business, Peak Mining. The AI and high-performance computing (HPC) solutions provider aims to strengthen its position as a pure AI solution business. The company now plans to leverage the growing demand for AI technology.
Northern Data is shifting its focus from Bitcoin to AI. According to the announcement, Northern Data is in negotiations with stakeholders regarding the potential divestment of Peak Mining. This move comes after the company reported strong growth in its AI solution business for the third consecutive quarter in Q3 2024.
“Mining is a foundational part of Northern Data’s traditional and growth story. We remain supporters of blockchain technology and continue to believe in its potential,” said Aroosh Thillainathan, Co-founder and CEO of Northern Data Group.
Thillainathan also emphasized the importance of finding a suitable steward for the mining business as the company focuses on AI innovation.
Northern Data reported revenues of 26 million euros in Q2 2024 and 59 million euros in Q3 2024. This was generated by its consolidated data centers, cloud, and Bitcoin mining business. However, the company did not provide a breakdown by market segment.
Northern Data plans to reinvest the potential proceeds from divestment into its AI product platform. According to the report, the proceeds will be specifically used to enhance its dynamic enablement services through new software functionalities and hosting services.
The company also intends to acquire more data centers and purchase more AI GPUs.
This shift aligns with Northern Data’s recent activities in the AI field. In early 2023, the company received support 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 United States.
Despite the potential divestment of its mining business, Northern Data confirms that it expects to achieve a hash rate of 7.9 EH/s by the end of 2024. However, the company has ceased providing monthly production updates.