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

Northern Data AG, a German high-performance computing infrastructure company, is evaluating the possibility of launching an initial public offering (IPO) in the United States for its cloud computing and data center units.

The potential value of this IPO could reach $16 billion. According to According to Bloomberg News sources.

Northern Data Eyes U.S. IPO

Northern Data is considering merging its cloud computing subsidiary, Taiga, with its data center operations, Ardent, to form a new company for a potential U.S. initial public offering. The combined entity could list on the Nasdaq as early as the first half of 2025.

The decision coincides with a recovery in the US IPO market, which has been boosted by investor optimism about economic stability. Moreover, there has been renewed interest in new listings in 2024. The launch of ChatGPT by OpenAI has also spurred demand for AI technologies, leading to significant investments in the sector.

Big tech companies, such as Microsoft and Alphabet, have made significant investments in the infrastructure needed to support AI applications.

The company is currently in talks with potential advisors regarding the IPO and intends to appoint leading banks in the coming months. However, depending on the outcome of these strategic engagements, Northern Data may decide not to proceed with the IPO. So far, the company has not provided an official comment on these plans.

Northern Data’s market position

The Frankfurt-based company, which went public in 2018, has seen its shares fall about 5% this year, pushing its market value to nearly 1.3 billion euros ($1.4 billion).

Northern Data has been adapting its energy-intensive data centers to enable AI applications in response to shrinking margins in its cryptocurrency mining business. In 2022, Northern Data was a prominent Ether miner, dedicating more than 70% of its operations to the activity. After the Ethereum blockchain update, the company shifted its focus away from mining and toward high-performance computing and other projects.

The company secured a €575 million debt financing agreement from Tether Group in November. Tether then became a major investor after buying a Tether-related company for €400 million in January.

Notably, the company is using the money to buy advanced AI chips from Nvidia Corp., with plans to deploy nearly 20,000 H100 chips by the end of the summer.