Northern Data has announced plans to sell its Bitcoin mining division, Peak Mining, to Elektron Energy for up to $235 million, signaling a strategic pivot toward AI and high-performance computing. The deal includes an initial $175 million payment, with the remainder contingent on performance metrics. Despite a 72% revenue surge to €94.3 million in H1 2024, the company reported a staggering net loss of €164.6 million, driven by €136.4 million in asset writedowns. Meanwhile, its cloud segment, Taiga Cloud, saw a 95% revenue drop due to infrastructure upgrades, while Peak Mining’s revenue jumped 78% on higher Bitcoin prices.
Rumble’s Surprise Bid and Tether’s Role
U.S. streaming platform Rumble has expressed interest in acquiring Northern Data outright, offering 2,319 of its shares per Northern Data share—valuing the deal at approximately $18.27 per share. Tether, Northern Data’s majority stakeholder (54%), has endorsed the move, which would make it a major Rumble shareholder. The acquisition hinges on Northern Data divesting Peak Mining first, with proceeds likely reducing debt. Rumble is reportedly drawn to Northern Data’s hardware assets, including 20,480 Nvidia H100 GPUs and five data centers. The stock has already risen 9% on takeover speculation, though regulatory approvals and due diligence remain pending.
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