Mining company Northern Data expects to generate upward of $202 million to $206 million in revenue from crypto-mining operations this year.
German Bitcoin (BTC $16,782), according to a letter to shareholders from CEO Aroosh Thillainathan dated December 21. The mining business Northern Data anticipaqtes that its revenue from cryptocurrency mining operations would reach $202 million to $206 million this year.
This, at the midpoint, implies an increase of 1.11% above Northern Data’s total sales of $202 million for the fiscal year 2021, when the company’s revenue increased tenfold from the previous year. Added Thillainathan:
“Northern Data is not carrying financial debt and therefore has access to the unique opportunity to consolidate and expand our current position in BTC mining while scaling cloud solutions and colocation services in parallel. We see significant opportunities in the HPC [high-performance computing] markets we are targeting.”
Investors should anticipate forecasts of $43 million to $80 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) according to the blockchain CEO.
Northern Data generated $95.2 million in EBITDA in 2021, with non-adjusted statistics being significantly higher as a result of one-time events such payments from Whinstone’s US company’s electricity contracts for weather-related power shortages and the consequences of selling its Whinstone business.
Thillainathan explained that the general absence of growth from its business projections is due to a combination of a “+46% YTD [year to date]” increase in hash rate, “BTC prices down over 60% since the beginning of the year,” and “extreme increases in electricity prices.”
Thillainathan then disclosed that the business had contracted 13,000 application-specific integrated circuits (ASIC) miners with associated power contracts for the upcoming months.
“Northern Data’s monthly BTC production could already be around 500 BTC mathematically (at the current mining difficulty). Because with energy costs of around EUR 0.03/kWh, the production of a Bitcoin for around EUR 10,000, and therefore high profitability at the current BTC price, is still possible,” the CEO wrote.
