Northern Data is preparing for an IPO for its AI divisions: Valuation up to $16 billion
Date: 2024-07-02 Author: Gabriel Deangelo Categories: BUSINESS
German Bitcoin miner Northern Data AG is actively considering an IPO for its cloud computing and artificial intelligence data centers. According to Bloomberg, the company has already begun negotiations with consultants and financial institutions in order to prepare for this important step.
Subsidiaries of Taiga and Ardent at IPO
The subsidiaries of Northern Data, Taiga and Ardent, specializing in advanced cloud computing technologies and data centers for AI, came under detailed consideration. Northern Data plans to list these units on the NASDAQ stock exchange to provide investors with exposure to emerging technology sectors of the future.
According to media reports, the potential valuation of the company's business in the range from $10 billion to $16 billion is of interest to market participants and potential investors. Northern Data is actively considering the sale of a minority stake in these divisions prior to the IPO to optimize its financial position ahead of a major milestone in its development.
Preliminary Conditions and Final Decision
It should be noted that a final decision on whether to proceed with an IPO has not yet been made, and Northern Data may make changes to its plans depending on market conditions and internal strategic objectives. However, the interest from major financial market players confirms the significance and potential of the proposal.
Reports of a possible IPO significantly impacted Northern Data's share price, which rose 19% according to TradingView. The company's share price currently stands at €30.6 and its market capitalization reaches €1.34 billion.
Funding and Partnerships
In November 2023, Northern Data entered into a landmark €575 million loan agreement with Tether, demonstrating their ability to raise funding on competitive terms. This move aims to maintain sustainability and financial flexibility going forward.
Northern Data continues to develop as a key player in the AI and cloud computing technology sector, aiming for a major milestone in its development through a possible IPO for its Taiga and Ardent divisions. Preparation for this event involves assessing potential value and strategic planning to maximize benefits for the company and its shareholders.
