On Oct. 21, Northern Data AG, a German data center provider, announced it is exploring the sale of its crypto mining business, Peak Mining Frankfurt. This potential divestment would allow the company to focus on its growing artificial intelligence (AI) solutions business.

However, Northern Data cautioned that the sale is not finalized and its completion depends on current cryptocurrency market conditions. According to a report, the announcement of the potential sale led to a 12% increase in Northern Data’s stock price.

Since the Bitcoin halving in April, many miners have faced reduced block rewards. For example, a Bitcoin.com News report identified August 2024 as the toughest month for Bitcoin miners due to lower fees and a reduced hashrate. To address these challenges, some miners have shifted to supporting AI platforms, which also require significant computing power.

As predicted by some observers, the transition of certain Bitcoin miners to AI has bolstered their financial performance. As JPMorgan noted in June, Core Scientific’s announcement of a deal to host 200 megawatts of GPUs for Coreweave alone led to a $4 billion increase in the combined market capitalization of approximately 14 Bitcoin mining companies.

Meanwhile, a Bloomberg report revealed that Northern Data plans to fund its AI solutions business using the proceeds from the sale of Peak Mining Frankfurt. The data center provider also stated its intention to invest in acquiring and developing more data centers.

Northern Data has already indicated that it expects its revenues to triple in 2024, driven by soaring demand for AI computing. The German-based company is also reportedly exploring the possibility of listing its AI and data center business on a U.S. stock exchange at a valuation of $16 billion.