Bloomberg reports that German Bitcoin miner and cloud computing company Northern Data plans to merge its "cloud computing" and "data center" businesses into independent entities and list them on the U.S. Nasdaq exchange in the first half of 2025. It is rumored that Relevant banks have valued the company at between $10 billion and $16 billion.

Miner Northern Data eyeing U.S. IPO

Bloomberg quoted people familiar with the matter as saying that Northern Data, a German data center operator that specializes in providing high-performance computing solutions, plans to conduct an initial public offering (IPO) on the Nasdaq exchange in the United States in the first half of 2025:

Northern Data's senior management has contacted several institutions as bidding consultants on related matters and is currently negotiating with professionals.

Current plans indicate that Northern Data is expected to merge its cloud computing company "Taiga", data center company "Ardent" and Bitcoin mining company "Peak Mining" into one entity, together with the latter Listed on NASDAQ.

Banks have suggested valuing the business at between $10 billion and $16 billion, the sources said.

However, he still cautioned against this, saying discussions are still ongoing and IPO plans may change or be cancelled.

After all, in 2021, Northern Data also revealed that it would be led by Credit Suisse (now taken over by UBS) to list its cryptocurrency mining business in the United States, but it ended up being nothing.

NB2.DE soared 33% on the news

Northern Data stock (NB2.DE) has risen 24.4% in a day and a half on the news, and is up a respectable 19.6% today, giving the company a current market capitalization of approximately $1.58 billion.

In November last year, Northern Data also received 575 million euros (approximately $623 million) in unsecured debt financing from stablecoin issuer Tether to promote the expansion of its mining and AI businesses.

(Tether provides €575 million in unsecured debt financing! Strategic investment in Northern Data)

Mining business diversification

With the impact of the Bitcoin halving event fermenting, the profitability of miners has also been squeezed in this already overcrowded industry, and has declined significantly in the past two months.

In this regard, major miners have already diversified their businesses by taking over high-performance computing (HPC) projects or becoming GPU hosters to develop new revenue sources.

(JPMorgan Chase: Taking over high-performance computing projects to attract interest from investors in mining companies)

Northern Data is no exception, actively promoting progress in the fields of AI and machine learning by launching artificial intelligence accelerators and generative AI platforms.

The company’s CEO Aroosh Thillinathan also said at HPE Discover 2024 last month:

As an NVIDIA partner, we're ready to support our users' infrastructure needs and turn their ideas into reality.

Other peers entering the AI ​​field include Core Scientific and Hut 8 to cope with the challenge of shrinking profits for miners.

(Hut 8 received US$150 million in investment and will accelerate the construction of AI infrastructure platform)

This article Northern Data, a large European miner, intends to list on Nasdaq in 2025, with a valuation of US$16 billion, first appeared on Chain News ABMedia.