Coin World News Report:
Tether’s artificial intelligence computing company, Northern Data, has announced that it is considering exiting the Bitcoin mining business a few days after its announcement that it is expected to achieve a hash rate of 7.9 exahashes per second (EH/s) this year.
On October 17th, Northern Data released its third-quarter financial performance and stated in a press release that its mining business is still expected to soon open new locations in Corpus Christi, Texas, which is crucial for its hash rate goals.
However, four days later, the company revealed that it is exploring “potential transactions for its mining business,” specifically mentioning that it is “exploring the divestiture of its traditional cryptocurrency mining business, Peak mining.” As a result, Northern Data will become a “pure-play artificial intelligence solutions business.”
Northern Data stated that the proceeds from this transaction will be reinvested in its AI-focused business lines.
Third-quarter demonstration from Northern Data.
Read more:
Tether: Ten years, 1 trillion USDT, still unaudited.
This decision may be due to the decrease in Northern Data’s mining revenue proportion. This proportion has declined from 74% in early 2024 to 20% in the third quarter. Additionally, mining revenue has dropped from 22 million euros in the first quarter to 12 million euros in the third quarter.
While Northern Data considered this pivot, Tether does have other investments in the Bitcoin mining space, including BitDeer, Volta Energy, and 2040 Energy.
Northern Data has been involved in a dispute with former executives over securities fraud allegations. The company firmly maintains that no improper conduct has occurred.
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