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Northern Data AG, the Frankfurt-listed company, is advancing towards a sale of its cryptocurrency mining business, spurred by November’s Bitcoin rally. The decision to divest its mining operations was made in October, just before digital assets surged following the US election of crypto-friendly Donald Trump, according to Bloomberg. With Bitcoin nearing the $100,000 mark, the appeal of crypto assets has risen significantly. 
Elliot Jordan, Northern Data’s Chief Financial Officer, revealed during a presentation at the Deutsches Eigenkapitalforum that the sale process is well underway. “It’s ongoing is probably the best way to describe it — advanced in terms of offers coming in from a number of different parties,” Jordan stated. The company has engaged bankers, invited bids, and is currently evaluating proposals. 
The divestment aims to free up resources for expanding Northern Data’s artificial intelligence services, marking a strategic pivot as many miners adapt to changes in the Bitcoin network. The April Bitcoin software update halved mining revenues, prompting firms like Northern Data to explore alternative revenue streams. 
While Northern Data has refrained from providing an official valuation for the business, earlier estimates of $300 million to $500 million predate the recent Bitcoin rally. Jordan emphasized the timing, noting, “Obviously it’s a good time to be selling this position.”&nbsp; 
Tim Wunderlich, an analyst at Hauck Aufhaeuser Lampe Privatbank AG, suggested that with market rates reaching up to $100 million per exahash of computing power, the sale could fetch as much as $800 million under optimal conditions. 
Northern Data’s mining arm, which partnered in May with Penguin Infrastructure Holding to add 28 megawatts of mining capacity, boasts a hash rate of 7.9 exahash, representing just under 1% of the global Bitcoin mining network. 
Tether Holdings Ltd., a prominent issuer of stablecoins, is Northern Data’s largest shareholder, adding further attention to the potential sale. The move reflects Northern Data’s focus on leveraging the current crypto market upswing while preparing for its transition into the growing AI sector. 
The post <a href="https://www.unlock-bc.com/133393/tether-backed-northern-data-nears-sale-of-crypto-mining-division/">Tether-backed Northern Data Nears Sale of Crypto Mining Division</a> appeared first on <a href="https://www.unlock-bc.com">UNLOCK Blockchain</a>.

Tether-backed Northern Data Nears Sale of Crypto Mining Division

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