Northern Data Group experienced a decrease in revenue, with a reported net revenue of €77.5 million for the fiscal year 2023, compared to €193.3 million in 2022. The company’s total income also saw a decline, standing at €111.0 million for the period, down from €249.5 million the previous year. Despite these numbers, Northern Data remains optimistic about its future financial performance.
In 2024, Northern Data expects its revenue to increase significantly, with projections ranging from €200 million to €240 million. Looking ahead to 2025, the company anticipates even more growth, with revenue expected to reach between €520 million and €570 million. To support this growth, Northern Data plans to make substantial investments in various areas of its business.
One key focus for the company is its Bitcoin mining operations, particularly through its subsidiary Peak Mining. In 2023, Peak Mining mined a total of 2,298 BTC, contributing significantly to Northern Data’s revenue. The company’s strategy involves mining Bitcoin for its own account and selling the mined coins daily. Peak Mining has also been expanding its mining hardware, reaching a peak of 40,643 installed devices and 3.78 exahashes per second (EH/s) in May 2023.
Northern Data’s commitment to growth is further highlighted by its investment plans. The company intends to invest €140 million in Peak Mining, as well as €730 million in NVIDIA H100 Tensor Core GPUs. Additionally, Northern Data plans to allocate €110 million to expand its data center presence in the US and EU. These investments are aimed at strengthening the company’s position in the fields of AI and high-performance computing.
Founder and CEO Aroosh Thillainathan emphasized the strategic focus of Northern Data in 2023, positioning the company for growth and success in the coming years. He highlighted the firm’s strong financial position, with significant cash reserves to support its operations and expansion plans. Northern Data’s status as the largest Bitcoin miner in Europe further underscores its leading position in the industry.
Looking ahead, Northern Data is exploring the possibility of launching an initial public offering (IPO) in the US, with an estimated valuation ranging from $10 to $16 billion. This move could further enhance the company’s visibility and provide additional resources for its future endeavors in Bitcoin mining and high-performance computing.
Overall, despite facing revenue challenges in 2023, Northern Data remains optimistic about its prospects for growth and expansion in the coming years. The company’s strategic investments and focus on key areas of its business position it well for success in the evolving landscape of cryptocurrency and technology.
