German Bitcoin mining and cloud computing company Northern Data AG is reportedly planning an initial public offering for two of its subsidiaries in the United States, with a potential valuation of up to $16 billion.
As reported by Bloomberg on July 1, sources familiar with the matter revealed that executives at Northern Data, the largest Bitcoin miner in Europe by market capitalization, have reached out to multiple advisers regarding a potential IPO. The company is considering listing its “Taiga” and “Ardent” entities on the Nasdaq, representing its cloud computing and data center divisions. Additionally, Northern Data’s Bitcoin mining arm, Peak Mining, may also see a separate listing.
Although Northern Data had previously explored the possibility of an IPO for its cryptocurrency mining business in the U.S. in February 2021, no concrete action was taken at that time. The company has received suggestions from banks for a valuation ranging between $10 billion and $16 billion, but discussions are ongoing and plans are subject to change.
Founded in Germany in 2009 as Northern Bitcoin AG, Northern Data Group is a pioneer in the Bitcoin mining industry. The company currently operates three main divisions: Taiga, Ardent, and Peak Mining. Peak Mining, based in the U.S., is developing 700 megawatts of high-performance computing data centers, aiming to achieve up to 40 exahashes in mining capacity.
After initially focusing on Ethereum mining, Peak Mining transitioned from proof-of-work to proof-of-stake in September 2022 before returning its emphasis to Bitcoin. This strategic shift reflects the evolving dynamics of the cryptocurrency market.
Northern Data’s foray into artificial intelligence (AI) mirrors a broader trend among Bitcoin miners seeking new revenue streams. With profit margins tightening in the mining sector, companies like Core Scientific, TeraWulf, and Hut 8 Corp have also diversified into AI-related ventures.
In November 2023, Northern Data secured a significant $610 million debt financing from Tether, a stablecoin issuer, to support its investments in mining and AI initiatives. This funding underscores the company’s commitment to expanding its operations and exploring new opportunities in the rapidly evolving digital landscape.