In order to concentrate on Artificial Intelligence solutions, Northern Data AG is considering selling its Peak Mining division.Â
German-listed Northern Data, is an Artificial Intelligence infrastructure business supported by stablecoin issuer Tether to strengthen its position as a pure-play provider of AI solutions.
The Frankfurt-based company stated in a press release on October 21 that the possible sale of Peak Mining aligns with Northern Data’s goal to concentrate on a portfolio of data centers and the largest Generative AI cloud platform in Europe.
CEO and founder of Northern Data, Aroosh Thillainathan, reaffirmed the company’s commitment to blockchain technology and stressed the significance of finding a good steward for the cryptocurrency mining business. Aroosh Thillainathan:
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 press release, the money gained from the possible sale will be used to develop the AI product platform, especially its Dynamic Enablement Services, which will comprise new software features and managed services.
More funds will be allocated to purchasing AI GPUs and data centers to further improve infrastructure. Northern Data’s stock on the Frankfurt Stock Exchange shot up 10.69% to €35.20 after the announcement.
A few months have passed since the company announced a 22% sales gain in Q2, in spite of difficulties arising from the halving of Bitcoin.
Throughout the quarter, Norther Data brought in €26 million thanks to the solid performance of its cloud platform and well-timed investments in its mining and data center infrastructure.
Tether and Northern Data partnered in September 2023 to concentrate on projects related to Artificial Intelligence, peer-to-peer communications, and data storage options.
The stablecoin issuer denied rumors that it had paid $420 million for 10,000 H100 GPUs from Northern Data, although it did not reveal any transactional details.
