Northern Data AG Eyes $16 Billion US IPO for Two Subsidiaries by 2025
Summary:
German Bitcoin miner Northern Data AG is contemplating an initial public offering (IPO) in the United States for two of its entities, potentially valued at up to $16 billion. The IPO, slated for the first half of 2025, would potentially see its "Taiga" and "Ardent" units - focused on cloud computing and data center operations respectively - listed on the Nasdaq. Northern Data's Bitcoin mining division, Peak Mining, could also be up for a separate listing. However, these plans are still under discussion and may change or even be abandoned. Founded in 2009, the company has expanded into the AI industry as Bitcoin mining profit margins shrink. Northern Data secured $610 million in debt financing in November 2023.
Northern Data AG, a German company at the forefront of Bitcoin mining and cloud computing, is reportedly planning an initial public offering (IPO) for two of its subsidiaries in the United States, potentially valued at as much as $16 billion. Bloomberg's July 1 report, citing sources close to the situation, stated that leaders from Northern Data, currently Europe's most significant Bitcoin miner by market cap, have been in talks with several advisors regarding an IPO, with the aim of potentially listing by the first six months of 2025. Current plans entail Northern Data listing its "Taiga" and "Ardent" units on the Nasdaq - these units cover the company's data center and cloud computing operations. Northern Data's Bitcoin mining business, Peak Mining, could also be separately listed, as was apparently suggested to analysts and investors in November. Last year, in February 2021, Northern Data had hinted at an IPO listing for its cryptocurrency mining branch in the U.S., but there were no following developments. Sources suggest banks have proposed a valuation in the range of $10 billion to $16 billion, however, discussions are ongoing and plans could well change - the idea of an IPO might even be dropped entirely. No comment has been immediately provided by Northern Data regarding this issue. Northern Data Group, originally established as Northern Bitcoin AG in Germany in 2009, is among the earliest Bitcoin miners in existence. The company now runs three primary business divisions - Taiga, Ardent, and Peak Mining, with the latter being their US-based Bitcoin mining arm currently developing 700 megawatts of high-capacity data centers, which the company anticipates could provide up to 40 exahashes. Peak Mining once centered its operations around the Ethereum network before shifting from proof-of-work to proof-of-stake in September 2022, as stated by Bloomberg. Its focus now returned to Bitcoin mining. As profit margins diminish further in the Bitcoin mining sector, like many other Bitcoin miners, Northern Data has ventured into the AI industry. Other Bitcoin mining companies, such as Core Scientific, TeraWulf, and Hut 8 Corp, have followed a similar path in recent times. In November 2023, Northern Data received $610 million in debt financing from Tether, the stablecoin issuing company, as investments for its mining and AI ventures.
Published At
7/2/2024 8:11:22 AM
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