Northern Data Plans Peak Bitcoin Mining Sale as It Shifts Focus to AI Growth and Innovation

• Northern Data is in talks to divest Peak Mining as part of its strategy to become a leading AI solutions provider.
• Proceeds from the sale of Peak Mining will fund data center acquisitions, AI GPU purchases, and AI service development.
• Northern Data mined 447 BTC in Q1 2024, but the company’s future in cryptocurrency mining remains uncertain amid its AI shift.

Germany’s Northern Data is considering selling its Bitcoin mining business, Peak Mining, to shift its focus entirely on artificial intelligence (AI). On Monday, the company announced it had started negotiations with potential buyers for Peak Mining, a possible exit from the cryptocurrency mining industry. The move aligns with Northern Data’s broader strategy of expanding its AI solutions and infrastructure.

The company revealed that proceeds from the potential sale will be directed toward enhancing its AI platform. Investments will primarily target acquiring additional data centers, purchasing more AI GPUs, and developing advanced AI services. Notably, this pivot highlights Northern Data’s commitment to establishing itself as a leading provider of AI infrastructure in Europe and the U.S.

Reallocation of Resources to AI Infrastructure

Northern Data has been steadily transitioning toward AI, with recent investments reinforcing this direction. Earlier this year, Tether supported Northern Data’s $233 million stock issuance, a move aimed at funding the company’s purchase of Nvidia GPUs and expanding its data centers. The shift away from Bitcoin mining is a significant step, as Northern Data has long relied on the sector for revenue generation.

Despite this strategic shift, Northern Data’s financials show strong performance in 2024. The firm reported revenues of €26 million in Q2 and €59 million in Q3, largely driven by its data center, cloud, and Bitcoin mining operations. 

However, the exact breakdown of revenues across these segments was not disclosed, keeping investors and analysts speculating on the long-term financial impact of the proposed divestment.

Crypto Mining Operations Remain Active, but Future Uncertain

While Northern Data continues to mine Bitcoin, producing 447 BTC in Q1 2024, the company’s future in this space is uncertain. Its average cost of $28,500 per BTC highlights the high operational expenses involved. Yet, Northern Data remains committed to maintaining its mining infrastructure, including recent expansions in Texas, where it aims to reach a hashrate of 7.9 EH/s by the year’s end.