According to PANews, Northern Data AG is reportedly in talks with potential advisors to merge its AI cloud computing (Taiga) and data center (Ardent) businesses for a US IPO, with an estimated valuation of up to $16 billion. The company has invited several institutions to bid for advisory roles and may designate a lead bank in the coming months. The plan is to land on NASDAQ as early as the first half of next year. Bank valuation suggestions range from $10 billion to $16 billion, and the company may also sell minority stakes in this business department to investors before such a listing. Insiders say discussions are still ongoing, details may change, and the company may decide not to continue considering the strategic options under consideration. Representatives of Northern Data declined to comment.
Northern Data's stock price has fallen about 5% this year, with a market value of approximately $1.4 billion. This move comes at a time of investment fever in AI cloud computing. Northern Data told analysts and investors in November that it was considering a separate IPO for its cloud computing department and planned to list its Bitcoin mining business in the United States. According to a statement in May, the company's US Bitcoin mining division, Peak Mining, is actively building or developing nearly 700 megawatts of data centers, which would make it one of the largest cryptocurrency miners in the United States. However, the decline in cryptocurrency mining profitability has prompted miners to transform their high-energy consumption data centers into digital infrastructure to support generative AI applications. In November, Northern Data obtained a debt financing arrangement of 575 million euros from stablecoin company Tether Group and completed the acquisition of Tether's investment tools worth 400 million euros in January. The company is using these funds to purchase the most sought-after chips from Nvidia, and by the end of this summer, it will deploy about 20,000 H100 AI chips.