Northern Data, a Germany-based company specializing in crypto mining and artificial intelligence, announced plans to consider selling its Peak Mining unit to strengthen its position as a dedicated AI solutions provider, with backing from stablecoin issuer Tether.
In a press release published today, October 21, the company explained that this potential sale aligns with its strategy to develop Europe’s largest Generative AI cloud platform and expand its extensive network of data centres.
Aroosh Thillainathan, the chief executive and founder of Northern Data, emphasized the importance of finding a suitable steward for the crypto mining division while reaffirming the company’s commitment to blockchain technology. He stated,
“Mining is a foundational part of Northern Data’s heritage and growth story. We remain supporters of blockchain technology and continue to believe in its potential.”
According to the announcement, the proceeds from the potential sale will be reinvested to expand the company’s AI product platform, specifically its Dynamic Enablement Services, which will include new software capabilities and managed services. Northern Data also plans to invest in acquiring data centers and AI GPUs to further strengthen its infrastructure.
This decision comes after the company’s financial report showed a 22% increase in revenue in the second quarter of 2024, despite challenges caused by the recent Bitcoin halving. The company made €26 million in revenue during the quarter, mainly due to the strong performance of its cloud platform and strategic investments in its data centre infrastructure and mining operations.
Meanwhile, this is not the first collaboration between Northern Data and Tether. In September 2023, Tether announced a partnership with Northern Data to explore initiatives in AI, peer-to-peer communications, and data storage solutions. Although the stablecoin issuer did not disclose specific financial details about the collaboration, it denied reports claiming it invested $420 million in 10,000 H100 GPUs from Northern Data.
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