European crypto mining leader Northern Data AG is considering launching an initial public offering (IPO) for its combined artificial intelligence (AI) cloud computing and data center operations in the U.S. next year, as reported by Bloomberg, citing sources familiar with the matter.
Sources indicate that the IPO could value the entity between $10 billion and $16 billion. They also suggest that Northern Data AG may sell a minority stake in the unit to investors prior to the listing. The Frankfurt-based Bitcoin miner is reportedly in discussions with multiple potential advisers to compete for advisory roles and could appoint lead banks in the coming months. As of now, no final decision has been reached.
The decision to merge its AI and data center units remains unclear, as Northern Data had previously considered separate IPOs for its cloud and Bitcoin mining operations. Last November, the company explored a U.S. listing solely for its cloud unit and a separate listing for its Bitcoin mining operations, according to the report.
Following the announcement, Northern Data’s shares on the XETRA stock exchange saw a significant uptick, rising over 5% to €25, based on data from Google Finance.
In September 2023, Tether disclosed a partnership with Northern Data focused on AI, peer-to-peer communications, and data storage solutions. The stablecoin issuer did not disclose financial details of the collaboration but denied reports claiming a $420 million expenditure on 10,000 H100 GPUs from Northern Data.
