Northern Data Pivots to AI, Plans Crypto Mining Unit Divestment

German technology infrastructure provider Northern Data AG announced plans to explore the sale of its cryptocurrency mining subsidiary, Peak Mining, as part of a strategic shift to focus exclusively on artificial intelligence solutions. The announcement, made on October 21, triggered a 10.69% surge in the company’s shares to €35.20 on the Frankfurt Stock Exchange.

The Tether-backed company, which operates Europe’s largest Generative AI cloud platform, intends to reinvest potential proceeds from the divestment into expanding its AI capabilities. This includes enhancing its Dynamic Enablement Services with new software features and managed services, as well as acquiring additional data centers and AI-optimized GPUs.

The move follows Northern Data’s strong Q3 2024 performance, where the company reported revenues of €59 million ($64 million), with AI and HPC solutions contributing $52 million to the total. This marked the third consecutive quarter of sequential growth in its AI solutions business.

“Mining is a foundational part of Northern Data’s heritage and growth story,” said Aroosh Thillainathan, Founder and CEO of Northern Data Group. “We remain supporters of blockchain technology and continue to believe in its potential. This commitment means identifying the right steward for this valuable business is of absolute importance.”

The company is reportedly considering a U.S. listing for its AI cloud computing and data center businesses in the first half of 2025, with a potential valuation of up to $16 billion. The timing of the Peak Mining divestment announcement coincides with Bitcoin prices having risen over 60% this year, approaching the all-time high of $73,798 set in March.