Northern Data Plans U.S. IPO for 2025 with $16 Billion Valuation

Northern Data Plans U.S. IPO for 2025 with $16 Billion Valuation

Northern Data, Europe’s largest crypto mining company, is planning an initial public offering (IPO) in the United States, aiming for a valuation of up to $16 billion. Scheduled for the first half of next year, the IPO will include Northern Data’s cloud computing business, Taiga, and its data center operations, Ardent.

The company is currently in discussions with advisers regarding the IPO for its combined artificial intelligence cloud computing and data center businesses. Banks have suggested a valuation range between $10 billion and $16 billion for the IPO. Northern Data has asked advisers to pitch for roles and may select lead banks in the coming months. The company also plans to list these activities on Nasdaq and might sell a minority stake in the unit to investors before the IPO.

Northern Data’s shares have decreased by about 5% this year, resulting in a market value of approximately €1.3 billion ($1.4 billion). Based in Frankfurt, Germany’s financial hub, Northern Data has been publicly traded since 2018. The decision to pursue a U.S. IPO comes amid a surge in investments in cloud computing firms involved in the AI sector. For example, CoreWeave, a cloud computing provider, raised $8.6 billion in funding, achieving a $19.1 billion valuation.

Previously, Northern Data considered an IPO for the cloud unit alone and a separate U.S. listing for its Bitcoin mining operations. Peak Mining, Northern Data’s U.S. Bitcoin mining unit, is constructing or developing nearly 700 megawatts of data centers, positioning it as one of the largest crypto miners in the U.S. The company is adapting to thinner profit margins in crypto mining by transforming its energy-intensive data centers into digital infrastructure that supports generative AI applications.

The crypto industry has faced challenges with public listings in the United States. Companies like Circle and Kraken have encountered significant regulatory issues. The U.S. Securities and Exchange Commission has clashed with Kraken over allegations of operating an unlicensed exchange, a claim the company disputes. The regulatory status of stablecoins remains uncertain, affecting companies like Circle.

Despite these challenges, Northern Data is progressing with its plans. In 2023, the company unveiled a debt financing package to purchase more chips and enhance its generative AI offerings. Rosanne Kincaid-Smith, Northern Data’s Chief Operating Officer, mentioned at a meeting with investors and analysts in Frankfurt that the company is structured for flexibility. She stated, “A listing of our Taiga unit could absolutely be an option.” She also hinted at the possibility of floating the Bitcoin mining operations in the U.S. eventually. Northern Data has organized its operations into three distinct units: Bitcoin mining (Peak Mining), generative AI cloud services (Taiga), and data centers (Ardent). This structure allows the company to be more adaptable and explore various strategic options, including potential public listings.

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