Coin World Report:
Northern Data Group announced on Monday that it is considering selling its Bitcoin mining company, Peak Mining, to focus on strengthening its artificial intelligence (AI) products. Peak Mining, an AI and High-Performance Computing (HPC) solutions company, majority-owned by stablecoin giant Tether, is exploring the divestment to “accelerate its AI solutions business,” according to Northern Data’s statement on Monday.
The company stated that this withdrawal will enable Northern Data to establish its portfolio of generative AI cloud platforms and data centers, making it a “pure AI solutions business.”
“We aim to provide a seamless AI ecosystem where customers can access intelligent and sustainable solutions… and offer them the tools needed to potentially change the course of history,” said Rosanne Kincaid-Smith, Chief Operating Officer of Northern Data, in a statement on Monday.
It is currently unclear when Northern Data plans to sell Peak Mining and the expected selling price. Northern Data did not immediately respond to Decrypt’s request for comment.
According to their statement, the company intends to utilize any proceeds from the potential sale of Peak Mining to invest in the development and growth of its AI product platform, including new software tools and a range of hosting services. It is also considering allocating funds to acquire more data centers and GPUs to power AI computing.
Based on the company’s financial data, Northern Data reported revenues of €26 million (approximately $28 million) in the second quarter of 2024 and €59 million (nearly $64 million) in the third quarter, as published in the report last week. These revenues were not segmented by business vertical and came from the company’s data center, cloud, and Bitcoin mining operations.
As global energy consumption is expected to surge amidst the rush for data facilities, primarily driven by the increasing use of AI tools, a Goldman Sachs research report published in May 2024 revealed that by 2030, the electricity demand derived from data centers might increase by 160%. According to the report, the power required to process ChatGPT queries is approximately ten times that needed for generating Google searches.
Editor:
Andrew Hayward