Frankfurt-based technology company Northern Data, well known for bitcoin mining, recently transformed its business model into cloud solutions and data center infrastructure. The move caught the attention of investment bank Berenberg, which began covering the company’s stock with a buy rating and a price target of 39 euros ($41.84) per share, indicating a 53.2% upside potential from the current stock price as of April 26. Listed on the Frankfurt Stock Exchange, Northern Data has three main divisions: Peak Mining for bitcoin mining, Taiga Cloud for cloud computing and Ardent Data Centers for data center infrastructure. Berenberg believes that the market has largely neglected the growth prospects of Taiga Cloud’s offering. Northern Data shares are also traded over-the-counter in Italy and the United States, but trading frequency and volumes are expected to be very low. NB2-DE 1Y Line The business transformation is not the first for the company, listed since 2015. Formerly known as Biosilu Healthcare, the company was a pharmaceutical broker for Asian markets until early 2018. It then oriented towards crypto mining operations. and was renamed Northern Bitcoin, making it one of the first listed companies to enter the crypto scene. In its current format, Northern Data continues to evolve with the acquisition of a data center in Pittsburgh earlier this year. The company said it would quadruple its installations by the second half of next year. Northern Data is also expected to benefit from the advancements its subsidiary Ardent Data Centers has made in liquid cooling technology in its crypto mining operations over the years. “We believe that Northern Data’s significant investments in the latest liquid-cooled extraction technology and the company’s expansion at its existing North Dakota and new Texas locations should enable it to achieve high bitcoin production and mining profitability,” Berenberg analysts said. Gerhard Orgonas and Jenna Xu said in a note to clients on April 25: “We believe that Northern Data’s expertise in energy-efficient, cutting-edge, liquid-cooled data centers makes it a leading service provider. competitive colocation, especially given the increasing efficiency requirements for generative AI applications. The investment bank estimates that Peak Mining can achieve revenues in excess of €170 million by next year, with adjusted margins above 40%. But it’s Northern Data’s cloud solutions that analysts are eyeing. The company’s Taiga Cloud division is a certified Nvidia ‘Elite’ Partner, making it one of the largest Nvidia-based cloud service providers in Europe. The investment bank forecasts annual revenue of around €400 million and adjusted profit of around €290 million for Taiga Cloud from 2026. Northern Data’s cloud computing platform is expected to have 20,000 Nvidia AI chips, worth 730 million euros, by the third quarter of 2024, the note said. Northern Data founder and CEO Aroosh Thillainathan also demonstrated his confidence in the company by announcing plans to acquire shares worth up to €30 million this year. As of March 21, the company announced that Thillainathan’s stake in Northern Data Group increased to 3.8 million shares, representing approximately 7.15% of the company’s current share capital.
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