Northern Data AG, a German high-performance computing infrastructure company, is considering an initial public offering (IPO) of its data center Ardent and artificial intelligence cloud computing Taiga businesses on the Nasdaq exchange in the United States, possibly in early 2025.

According to Bloomberg News, the IPO valuation is expected to reach $16 billion. Currently, Northern Data is conducting an in-depth assessment of the feasibility of this listing plan.

Northern Data explores possible US listing

Northern Data, a German high-performance computing infrastructure company, is planning to merge its cloud computing division Taiga and data center business Ardent into one, and the newly formed company plans to sprint for Nasdaq IPO in the first half of 2025. This move coincides with the recovery of the US IPO market, and investors' positive expectations for a healthy economy have provided impetus for the market recovery. At the same time, breakthroughs in artificial intelligence technology, such as ChatGPT launched by OpenAI, have also rekindled the market's enthusiasm for new listed companies and driven a large amount of investment in the AI ​​industry.

Against this backdrop, technology giants Microsoft Corp. and Alphabet Inc. have invested heavily in infrastructure to support AI applications, highlighting the huge growth potential of this market.

At the same time, Northern Data is currently negotiating with potential advisory teams on IPO-related matters and plans to determine the lead underwriter bank in the next few months to promote the listing process. However, the company also stated that it will decide whether to advance the IPO process based on the final results of the strategic cooperation. So far, Northern Data has not issued an official statement on its listing plan.

Northern Data's market position

The Frankfurt-based company, which went public in 2018, has seen its shares fall about 5% so far this year. That reduces its market value to about 1.3 billion euros, or $1.4 billion.

In response to shrinking profit margins in cryptocurrency mining, Northern Data has been adjusting its energy-intensive data centers to support AI applications. As a well-known Ethereum miner, Northern Data focused more than 70% of its business on mining activities in 2022 alone. However, with the update and iteration of the Ethereum blockchain, Northern Data has gradually shifted its business focus from the original cryptocurrency mining to high-performance computing and other emerging project areas.

As early as November last year, Northern Data obtained a debt financing agreement of 575 million euros from Tether Group. Then in January of this year, Tether acquired a company related to it for 400 million euros and became a cornerstone investor of Northern Data.

It is worth noting that the company is using the funds to purchase advanced AI chips from Nvidia Corp. and plans to deploy about 20,000 H100 chips by the end of summer, a move that marks the company's further deepening and expansion in the field of AI. #NorthernData #挖矿 #转型 #IPO

Conclusion:

German high-performance computing company Northern Data AG is at a critical stage of business transformation, from a former Ethereum mining giant to an innovator that actively embraces artificial intelligence technology. As the company adjusts its data centers and further develops AI applications, Northern Data is gradually shaping its new image in the field of emerging technologies.

Faced with the shrinking profits of cryptocurrency mining, Northern Data has demonstrated its ability to flexibly adjust its strategy and shift its business focus to high-performance computing and other projects. In particular, after receiving financial support from Tether Group, the company has not only consolidated its financial foundation, but also laid a solid foundation for further technology investment and market expansion.

Currently, Northern Data is considering an IPO on the Nasdaq exchange in the United States. If this move is successfully implemented, it will bring broader capital market opportunities to the company and provide global investors with the opportunity to participate in its growth story. Although the final decision on the IPO will be based on the results of the strategic cooperation and market conditions, Northern Data's future development and the possibility of listing in the United States are undoubtedly worthy of continued market attention.