Northern Data, the AI computing company owned by Tether, has stated that it is contemplating exiting the bitcoin mining sector just days after reporting its projection to achieve 7.9 exahashes per second (EH/s) this year.
On October 17, Northern Data released its Q3 financial results, indicating in a press statement that its mining operations were still on track to inaugurate its new Corpus Christi Texas facility — essential for its hash rate ambitions — in the near future.
However, just four days later, the firm disclosed that it was investigating a “potential transaction of its mining operations,” specifically mentioning its intention to “explore the divestiture of its legacy crypto mining business, Peak Mining.” Consequently, Northern Data would transition to become “a dedicated AI Solutions company.”
Northern Data asserts that the proceeds from this transaction would be reinvested into its AI-oriented business segments.
Read more: Tether: Ten years, 100,000,000,000 USDT, and still no audit
This decision seems to be influenced by a decrease in the share of Northern Data’s revenue attributed to mining. This share has declined from 74% at the start of 2024 to just 20% in Q3. Additionally, mining revenues dropped from 22 million euros in Q1 to merely 12 million euros by Q3.
While Northern Data evaluates this strategic shift, Tether still maintains other investments in the bitcoin mining arena, including Bitdeer, Volcano Energy, and 2040 Energy.
Northern Data is also currently engaged in a legal dispute with former executives regarding alleged securities fraud. The company contends that no wrongful actions took place.
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