Northern Data AG, a German Bitcoin mining and cloud computing company, is exploring the possibility of an Initial Public Offering (IPO) in the United States for two of its subsidiaries, with a potential valuation reaching as high as $16 billion.
A report from Bloomberg on July 1, which references informed sources, reveals that Northern Data, recognized as Europe’s most significant Bitcoin miner by market capitalization, has initiated discussions with various consultants regarding an IPO, targeting a prospective launch in the initial half of 2025.
The current strategy involves Northern Data positioning its subsidiaries “Taiga” and “Ardent” on the Nasdaq stock exchange, representing its cloud computing and data center operations, respectively.
Additionally, there’s speculation about a distinct IPO for Northern Data’s Bitcoin mining division, Peak Mining. This information was purportedly shared with analysts and investors in November.
Previously, in February 2021, Northern Data had contemplated an IPO for its cryptocurrency mining operations in the U.S., but the plans did not materialize.
Banking sources suggest a valuation range between $10 billion and $16 billion, although they emphasize that discussions are ongoing. Consequently, the plans could be altered, or Northern Data might decide against proceeding with the IPO.
Requests for comments from Northern Data to Cointelegraph did not receive an immediate response.
Caption: Progress at one of Northern Data’s Ardent Data Centers. Credit: Northern Data
Established in 2009 as Northern Bitcoin AG, Northern Data Group stands as one of the pioneering Bitcoin mining companies. Presently, the company operates three divisions: Taiga, Ardent, and Peak Mining, with the latter being its American Bitcoin mining branch. This division is currently developing high-performance computing data centers with a capacity of 700 megawatts, which are expected to ultimately deliver up to 40 exahashes.
For some time, Peak Mining concentrated on mining within the Ethereum network, until the network’s shift from a proof-of-work to a proof-of-stake model in September 2022, as noted by Bloomberg. Since then, the company has refocused its efforts on Bitcoin mining.
In the context of shrinking profit margins in the Bitcoin mining industry, Northern Data is among several miners venturing into the artificial intelligence sector. Other mining entities like Core Scientific, TeraWulf, and Hut 8 Corp have embarked on similar paths in recent times.
In a strategic move to bolster its mining and AI ventures, Northern Data secured a $610 million debt financing deal from the stablecoin issuer Tether in November 2023.
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