Northern Data to Quit Crypto Mining, Focus on AI Expansion

Northern Data, a German company owned by Tether, has announced plans to consider the sale of its crypto mining business, Peak Mining, to refocus on artificial intelligence solutions in a press release.

This announcement comes just days after the group released its Q3 financial results, where it noted that its mining business was still on track and is on course to deliver 7.9 exahashes per second (EH/s) this year.

The decision to divest from crypto mining and focus on AI aligns with Northern Data’s broader goal of becoming a pure-play AI solutions provider in the future.

Northern Data Shift from Crypto Mining to AI

Founder and Group CEO of Northern Data Group, Aroosh Thillainathan, commented on the switch saying:

“Mining is a foundational part of Northern Data’s heritage and growth story. We remain supporters of blockchain technology and continue to believe in its potential.”

She explained that the switch from crypto mining to AI was a result of the group trying to identify the right business model with importance. Additionally, she stated that they were solidifying their focus on powering AI innovation through best-in-class infrastructure and carbon-neutral energy systems.

The reason for this pivot maybe as a result of declining revenue from crypto mining. Once a major revenue stream, mining’s contribution has dwindled from 74% at the start of 2024 to only 20% according to Northern Data’s Q3 financial report.

However, Northern AI’s business has shown consistent growth over the last few quarters. According to its Q3 2024 financial results, the company’s revenue from AI solutions has strong sequential growth, contributing to its decision to prioritize AI moving forward.

Plans to Grow its AI Solutions

In the press release, Northern Data emphasized the need to divest Peak Mining to free up capital for further investments in its AI platform, specifically its Dynamic Enablement Services

Subsequently, proceeds from the potential sale of Peak Mining will be used to fuel the company’s AI expansion, including investment in data centers and the acquisition of advanced AI GPUs. The company also aims to build Europe’s largest generative AI cloud platform and continue delivering high-quality, sustainable infrastructure.

For now, the company operates a portfolio of data centers with plans to build new facilities with a focus on sustainability and carbon neutrality.

These efforts according to Rosanne Kincaid-Smith, Group COO, of Northern Data Group are geared towards making Northern Data lead the charge at the forefront of the AI revolution.