Europe’s largest Bitcoin miner Northern Data to launch IPO in the US

Europe’s largest Bitcoin miner, Northern Data AG, has announced plans for a substantial initial public offering (IPO) in the US at a valuation between $10 billion and $16 billion.

The IPO, which will be held on the Nasdaq stock exchange, is scheduled for the first half of 2025 and may also include selling a minority stake to investors prior to the public listing.

Following the IPO announcement, Northern Data’s shares on the XETRA stock exchange surged by over 5%, reaching €25. This positive market reaction indicates strong investor confidence in the company’s future prospects. The firm first considered an IPO in 2021 but decided against it at the time.

The upcoming offering will highlight two of Northern Data’s key business units: Taiga, which handles the company’s cloud computing activities, and Ardent, which manages its data centers. Both units are crucial to Northern Data’s strategy to capitalize on the rapidly expanding AI sector.

The crypto industry continues to face regulatory challenges. Previous attempts by digital asset firms to go public, including Circle, encountered difficulties due to regulatory scrutiny. However, Northern Data’s focus on AI and cloud computing may help it navigate these challenges more effectively.

AI pivot

Originally founded as Northern Bitcoin AG, Northern Data has grown into a significant player in the Bitcoin mining industry. In recent years, the company has diversified its operations to include artificial intelligence (AI) and cloud computing, responding to the decreasing profitability of Bitcoin mining and the growing opportunities in these fields.

In November 2023, Northern Data secured $610 million in debt financing from Tether. The investment is intended to strengthen Northern Data’s AI and cloud computing operations.

The financing followed a strategic partnership between the two companies announced in September 2023. The partnership aimed to focus on AI, peer-to-peer communications, and data storage solutions.

Northern Data’s pivot towards AI and cloud computing reflects a broader industry trend. As the profitability of Bitcoin mining declines, many companies, including Core Scientific and Hut 8 Corp, are exploring new revenue streams.

Committed to Bitcoin mining

While diversifying its business, Northern Data remains committed to Bitcoin mining and plans to continue expanding its footprint in the industry.

Peak Mining, the company’s US-based Bitcoin mining unit, is a significant part of its operations, with nearly 700 megawatts of high-performance computing data centers. In 2023, Peak Mining mined 2,298 BTC, generating over $64 million in revenue despite an 18% year-over-year decrease in production.

Northern Data’s presence in the US has been growing steadily. In May, the company acquired its second 300-megawatt mining site, further solidifying its position in the American market. The expansion highlights Northern Data’s long-term commitment to Bitcoin mining, even as it explores new technological frontiers.

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