Northern Data Group, backed by stablecoin giant Tether, is considering selling its cryptocurrency mining division, Peak Mining, to focus on expanding its artificial intelligence (AI) and high-performance computing (HPC) businesses.
The Germany-based company announced on October 21 that it had entered negotiations with potential buyers, although no specific parties were named. Northern Data also noted that the sale would depend on market conditions.
If the sale of Peak Mining proceeds, Northern Data plans to reinvest the funds into enhancing its AI platform, acquiring data centres, and purchasing additional AI hardware, including GPUs.
According to Rosanne Kincaid-Smith, the company’s Chief Operating Officer, this move is part of the company’s broader strategy to lead the way in AI and cloud computing.
“As AI reshapes industries, Northern Data is focused on being at the forefront of this revolution,” she said.
Tether, Northern Data’s largest shareholder with a 46% stake, has been instrumental in funding the company’s growth.
The stablecoin issuer provided $610 million in debt financing in 2023, followed by another investment in July to maintain its ownership stake during a new share issue.
Tether, meanwhile, is pursuing its own mining ventures in Latin America.
Northern Data’s shift toward AI is further reflected in its financial performance. In the third quarter of this year, the company earned €59 million ($64 million), with €52 million of that revenue coming from AI and HPC.
CEO Aroosh Thillainathan highlighted this during the company’s earnings report on October 17, reinforcing Northern Data’s commitment to accelerating its AI ambitions.
The company is also exploring a potential initial public offering (IPO) on the Nasdaq by 2025, which would see its AI-focused divisions, Taiga and Ardent, listed in the United States. For now, Northern Data is listed on German exchanges, including Xetra and Tradegate.
