Northern Data wants to sell Peak Mining to invest in AI expansion

Northern Data Group is looking to divest its cryptocurrency mining business Peak Mining. Proceeds from the possible divestment would be sunk into developing its artificial intelligence and high-performance computing (HPC) units. Northern Data’s main shareholder is stablecoin issuer Tether.

Divesting if market allows

Germany-based Northern Data announced on Oct. 21 that it has “resolved today to begin negotiations with interested parties” on divesting Peak Mining. The parties were not identified and Northern Data warned that divestment was not ensured and would depend on the cryptocurrency market, among other things.

The divestment of Peak Mining would leave Northern Data with its Taiga cloud computing and Ardent data center branches. According to a second statement issued later the same day, possible proceeds from divesting Peak Mining would go to adding capabilities and services to its AI product platform, data center acquisition and development and purchasing additional AI graphics processing units (GPUs).

Northern Data Group chief operating officer Rosanne Kincaid-Smith said: 

“As AI reshapes industries, Northern Data is focused on leading the charge at the forefront of the AI revolution.” 

Tether owns a big chunk

Tether owns around 46% of Northern Data stock, according to Bloomberg. Tether made its first investment in September 2023 and provided Northern Data with $610 million in debt financing (that is, a loan) in November 2023. According to trade publication The Miner Mag, Tether invested in Northern Data again in July, preserving its share of ownership in a $233-million new share issue.

Related: Tether mulls lending to commodity traders: Report

Also in July, Northern Data indicated it was considering an initial public offering for the first half of 2025 that would place Taiga and Ardent on the Nasdaq exchange in the United States. Northern Data is listed in Germany on the Xetra and Munich exchanges and the Tradegate Exchange.

Northern Data earned 59 million euros ($64 million) in the third quarter, of which $52 million came from AI and HPC. Northern Data Group founder and CEO Aroosh Thillainathan said when those results were released on Oct. 17, “We’ve doubled down on our AI and HPC ambition.”

Tether has other outlets for its mining ambitions. CEO Paolo Ardoino stated in November that the company would construct its own mining facilities in Uruguay, Paraguay and El Salvador.  It invested in Bitdeer in May.

Tether expressed its interest in expanding into AI in a statement in March.

Magazine: AI may already use more power than Bitcoin — and it threatens Bitcoin mining