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

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    Northern Data Group is contemplating the sale of its cryptocurrency mining unit, Peak Mining, to bolster its artificial intelligence and high-performance computing services. The company has announced its interest in discussing the deal with potential buyers. Tether, the largest shareholder of Northern Data Group, controls approximately 46% of its stock. Proceeds from the sale could be used to enhance Northern Data Group’s artificial intelligence product platform, invest in data centers, and acquire additional artificial intelligence GPU units. The business aims to be a leader in AI, and is contemplating an initial public offering by the first half of 2025.

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    Northern Data Group is considering selling off its cryptocurrency mining arm, Peak Mining. If this goes ahead, they will use the money from the sale to boost their artificial intelligence and high-performance computing services. Tether, the stablecoin issuer, holds the biggest share of Northern Data Group.

    On October 21, Northern Data Group announced they’re ready to chat with potential buyers for Peak Mining. Who these buyers could be has not been revealed, and the sale is not guaranteed. Factors like the current state of the cryptocurrency market would influence this.

    If they do sell Peak Mining, Northern Data Group will still have their cloud computing branch, Taiga, and their data center branch, Ardent. Any cash made from the sale will be used to improve their artificial intelligence product platform, develop and buy data centers, and purchase more artificial intelligence graphics processing units.

    Rosanne Kincaid-Smith, COO of Northern Data Group, said they aim to be leaders in artificial intelligence as it reshapes various industries.

    Tether controls about 46% of Northern Data stocks according to Bloomberg. Tether first invested in Northern Data in September 2023 and provided a loan of $610 million in November 2023. In July, Tether invested in Northern Data once again, maintaining their share ownership in a fresh $233 million share issue.

    July also saw Northern Data hinting at a possible initial public offering by the first half of 2025. This move could see Taiga and Ardent joining the Nasdaq exchange in the United States. Currently, Northern Data is listed in Germany on the Xetra, Munich exchanges, and the Tradegate Exchange.

    Northern Data’s earnings for the third quarter were 59 million euros ($64 million), with $52 million coming from artificial intelligence and high-performance computing. Aroosh Thillainathan, CEO and founder of Northern Data Group, stated they have doubled down on their AI ambition.

    Tether also has other mining projects in the works. In November, CEO Paolo Ardoino said they are planning to build their own mining facilities in Uruguay, Paraguay, and El Salvador. Tether had also previously invested in Bitdeer this past May.

    Tether is also keen on expanding into the artificial intelligence sector, as they revealed in a statement in March.

    Source: Cointelegraph

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