Northern Data Group is looking to divest its crypto mining business, Peak Mining.

The company confirmed on October 21 that it is considering dropping the crypto side of its business to focus more on its artificial intelligence (AI) and high-performance computing (HPC) solutions.

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– Ardent DC

The company notes that its Q3 2024 financial results saw strong sequential growth in its AI Solutions business and that by divesting in Peak Mining, the proceeds could further be put towards the growth of its AI product platform.

Northern Data added that proceeds could be used toward data center acquisition and development, and the purchase of more GPUs.

Aroosh Thillainathan, founder and group CEO of Northern Data, said: “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. 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.”

Northern Data Group was initially founded as Northern Bitcoin AG in Germany in 2009 and branded itself as a 'green' Bitcoin mining company. In 2019, it merged with Whinstone US, with the firm's CEO, Aroosh Thillainathan, then became CEO of the joint company. In 2020, Northern Bitcoin was officially renamed Northern Data Group and moved its focus to HPC.

In the summer of 2023, Northern Data Group split its business into three brands: Taiga Cloud, Ardent Data Centers, and Peak Mining. Earlier this year, it was reported that Northern Data was looking at an initial public offering (IPO) for both Taiga and Arden, which could be targeting a $10-16 billion valuation. The company operates 11 data centers.

Many crypto mining companies have been pivoting to AI offerings, following market trends. Other companies making the shift include the likes of Ault Alliance, SingularityNet, Crusoe Energy, Hut 8, and CoreWeave.

This week, JP Morgan analysts said that Bitcoin miners had a limited window of opportunity to sign contracts with hyperscalers and AI businesses.

"We think select miners have around nine months to sign favorable deals with a handful of well-funded hyperscalers/AI startups, while data center applications remain in limbo, awaiting approval and or grid interconnections," analysts Reginald L. Smith and Charles Pearce said in the report.