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

Northern Data AG, a German firm specializing in high-performance computing infrastructure, is evaluating the possibility of launching a U.S. initial public offering (IPO) for its AI cloud computing and data center units.

The potential valuation for this IPO could reach as high as $16 billion, according to Bloomberg News sources.

Northern Data Eyes US IPO

Northern Data is considering combining its cloud computing branch, Taiga, with its data center operations, Ardent, to form a new firm for a prospective U.S. IPO. The combined entity may be listed on the Nasdaq as early as the first half of 2025.

This decision coincides with a recovery in the U.S. IPO market, which has been boosted by investor optimism about economic stability. Furthermore, there has been a revived interest in new listings in 2024. The introduction of OpenAI’s ChatGPT has also stimulated demand for AI technologies, which has led to large investments in the sector.

Major technology companies, like Microsoft and Alphabet Inc., have made significant investments in the infrastructure required to support AI applications.

The company is now in conversation with possible advisors about the IPO and intends to hire lead banks in the coming months. However, based on the results of these strategic engagements, Northern Data may decide against proceeding 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 by around 5% this year. This has taken its market valuation to approximately €1.3 billion ($1.4 billion).

Northern Data has been adapting its energy-intensive data centers to enable AI applications in reaction to crypto mining’s shrinking business margins. In 2022, Northern Data was a notable Ether miner, devoting over 70% of its operations to the activity. Following an update to the Ethereum blockchain, the company changed its attention away from mining and toward high-performance computing and other projects.

The company obtained a €575 million debt financing agreement from Tether Group in November. Tether then became a cornerstone investor after they purchased a Tether-related vehicle for €400 million in January.

Notably, the company is using these funds to purchase advanced AI chips from Nvidia Corp., with plans to deploy approximately 20,000 H100 chips by the end of the summer.