Northern Data AG, a Bitcoin mining company based in Frankfurt, has announced a strategic move to bolster its operations with a substantial capital increase. The company aims to raise approximately €214 million by issuing 10,699,446 new bearer shares, equivalent to 20% of its current share capital.
According to a press release on July 15, the funds from this capital raise will primarily support the expansion of Northern Data’s cloud platform and physical data centre presence across Europe and the United States. Additionally, the company plans to enhance its infrastructure to advance high-performance computing and generative artificial intelligence capabilities.
“Management believes that these investments will support the company’s position as a leader in high-performance computing by building the much-needed infrastructure required to power generative AI innovation”,
the press release stated.
The issuance of new shares is set at €20 per share, representing a premium of approximately 1.7% over the volume-weighted average price in Xetra trading before the announcement. Northern Data assured existing shareholders that there would be no economic dilution for those who choose not to participate in the capital increase.
To facilitate the process, the company will utilise existing authorised capital, excluding statutory subscription rights of shareholders.
The capital increase will be executed in two stages, initially subscribed by major shareholder Tether and an entity indirectly owned by CEO Aroosh Thillainathan, followed by pro rata participation from other major shareholders.
Northern Data anticipates that these investments will strengthen its position as a leader in high-performance computing and support innovations in generative AI, reinforcing its role in the evolving Bitcoin mining industry.
The capital infusion announcement follows Northern Data’s recent announcement that the company has plans for an initial public offering (IPO) in the United States, aiming for a valuation ranging from $10 billion to $16 billion. The IPO, slated for the first half of 2025 on Nasdaq, will include its “Taiga” and “Ardent” entities, focusing on cloud computing and data centre operations. This move follows recent projections and discussions with advisors to potentially sell a minority stake before the listing.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with Markets PRO, DeFi Planet’s suite of analytics tools.”
