Northern Data, European Bitcoin Miner, Explores IPO for US AI Unit

Northern Data might be exploring options for a Nasdaq listing in early 2025, covering its data centers (Ardent) and AI cloud computing (Taiga).

Northern Data AG, a German firm specializing in high-performance computing infrastructure, is evaluating the possibility of launching a U.S. initial public offering (IPO) for its AI cloud computing and data center units. The potential valuation for this IPO could reach as high as $16 billion, according to Bloomberg News sources.

Northern Data Eyes US IPO

Northern Data is considering combining its cloud computing branch, Taiga, and its data centre operations, Ardent, to form a new company for a potential US IPO. The combined business might be listed on the Nasdaq as early as the first half of 2025.

This judgement comes at a time when the US IPO market is recovering, boosted by investor confidence in the economy’s stability. Furthermore, there has been a renewed interest in new listings for 2024. The introduction of OpenAI’s ChatGPT has significantly increased demand for AI technology, resulting in significant investments in the industry. Major technology companies, like Microsoft and Alphabet Inc., have made major investments in the infrastructure needed to support AI applications.

The company is now in discussions with potential advisors for the IPO and plans to recruit lead banks in the coming months. However, depending on the outcomes of these strategic discussions, Northern Data may decide against proceeding with the IPO. So far, the corporation has not issued an official statement regarding these plans.

Northern Data’s Market Position

The Frankfurt-based company, which went public in 2018, has seen its stock price decline by approximately 5% this year. This has increased its market value to almost €1.3 billion ($1.4 billion). In response to the narrowing business margins of cryptocurrency mining, Northern Data has adapted its energy-intensive data centres to enable AI applications. In 2022, Northern Data was a significant Ether miner, devoting more than 70% of its operations to the business. Following an update to the Ethereum blockchain, the company shifted its focus from mining to high-performance computing and other projects.

In November, the company signed a debt financing transaction for €575 million with Tether Group. Tether then became a cornerstone investor, paying €400 million for a Tether-related vehicle in January. Notably, the company is utilising these money to buy advanced AI chips from Nvidia Corp., with ambitions to deploy over 20,000 H100 chips by the end of the summer.

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