Europe's largest Bitcoin miner to ditch mining roots for AI future

Once a pioneer in Bitcoin mining, Northern Data is taking a daring leap into AI, signaling a potential turning point for the industry.

With more than 2,000 BTC mined in 2023 alone, its mining arm Peak Mining is profitable—but the company sees bigger opportunities in artificial intelligence. In a move that has surprised many, Northern Data is selling off its crypto mining operations to focus entirely on building AI infrastructure.

Peak Mining, a key player in Bitcoin mining, produced 2,298 BTC last year, generating approximately $64.4 million in revenue. In the first quarter of 2024, it mined 447 BTC. Despite this impressive performance, Northern Data announced in a recent press release that it plans to divest Peak Mining as part of its strategic shift toward AI.

The company has begun negotiations with potential buyers, though the sale is not guaranteed and will depend on market conditions and other factors. As of now, the value and timing of the possible deal remain uncertain.

🤖 @NorthernDataGrp eyes #AI growth by selling Peak Mining to fund cutting-edge AI platforms and GPUs. 📈 Stocks soar 12%!
This strategic move could position Northern Data as a leader in AI innovation ▶️ https://t.co/I9wNaaBTD5 #artificialintelligence #crypto #bitcoin… pic.twitter.com/HHsKnS43Up

— Techopedia (@techopedia) October 22, 2024

Northern Data’s pivot comes as its AI Solutions division experiences rapid growth. CEO and founder Aroosh Thillainathan emphasized the company’s evolving focus. “Mining is a foundational part of Northern Data’s heritage and growth story. We remain supporters of blockchain technology and continue to believe in its potential,” she said.

“This commitment means identifying the right steward for this valuable business is of absolute importance, as we solidify our focus on powering AI innovation through best-in-class infrastructure and carbon-neutral energy systems,” added Thillainathan.

The AI Solutions segment has seen consistent revenue growth for three quarters, driven by demand for its Generative AI Cloud platform and specialized data centers. Northern Data aims to strengthen its position as a leader in high-performance computing (HPC) and AI.

COO Rosanne Kincaid-Smith shared the company's broader vision, explaining, “As AI reshapes industries, Northern Data is focused on leading the charge at the forefront of the AI revolution. Our goal is to provide a seamless AI ecosystem where customers can access intelligent, sustainable solutions that enable their businesses to harness AI's full potential.”

Proceeds from the sale of Peak Mining will be reinvested into expanding Northern Data’s AI infrastructure, including its Dynamic Enablement Services, new data centers, and additional AI GPUs. The company is also considering an initial public offering (IPO) for its data center arm, Ardent, and its cloud division, Taiga, on Nasdaq, according to Bloomberg.

AI's broader impact

Northern Data’s shift reflects a broader trend among Bitcoin miners diversifying into AI. A May 2024 Goldman Sachs report predicts that AI could drive a 160% increase in power demand for data centers by the end of the decade. Currently, data centers account for 1% to 2% of global power consumption, but this could rise to 3% to 4% by 2030.

Several other Bitcoin miners, such as Riot Platforms and Marathon Digital, have begun adapting their high-performance computing (HPC) infrastructure for AI tasks like machine learning and natural language processing. Many are leveraging their existing data centers and GPUs, originally designed for crypto mining, to accommodate AI functions without significant additional investment.

While many miners are incorporating AI into their operations, Northern Data is the first to fully divest its mining arm and focus entirely on AI. Kincaid-Smith expressed excitement about the future, stating, "We’re thrilled by the progress in the AI landscape and the role we’re playing in driving it forward."