European Bitcoin Miner Northern Data AG Wants to Go Public in the U.S

Northern Data has come a long way since breaking into the global market in Europe. Now, it is looking to gain a share of the world’s largest marketplace. 

Northern Data Eyes US Market

According to Bloomberg, German Bitcoin mining firm Northern Data AG is planning to list its stock publicly in collaboration with Credit Suisse. The mining firm is looking to come into the US market through an initial public offering (IPO) that could see it raise a potential $500 million, according to sources knowledgeable about the deal.

The Frankfurt-based mining firm is looking at making sales of its new shares later on in the year.  This move would potentially boost Northern Data’s standing in the global playground and its shareholder base.

The mining firm, which started as just a Bitcoin miner but later expanded to operating mining rigs for its clients, has seen its share price more than triple in Germany’s over-the-counter (OTC) market. Last year, its stock price surged 300% during the BTC frenzy but had since reversed following the recent BTC slump. It now trades at $136, down by 11% in the past 24hr.

Notable shareholders in the company are Cryptology Asset Group, backed by Christian Angermayer and Mike Novogratz, and EOS developer Brendan Blumer.

Northern Data has always concentrated its business in areas with low electricity tariffs like Frankfurt. It also runs data-mining centers in Rockdale, Texas, and is planning to increase its capacity to 1 GWh later on in the year.  

Issues with Whistleblowers

Northern Data faced a potential market slump in 2019 after getting trolled on social media. The event, which took place during a business presentation, saw investigative Twitter user BTCKING555 calling out the mining firm after it failed to answer questions about its business model.

BREAKING: Great coverage by @TBraithwaite @FTAlphaville on #NorthernDataFraud ! Fully agree “SUNLIGHT IS THE BEST DETERGENT“ Will have follow on report on Monday. Looking forward to open discussion about the company business model and its sustainability https://t.co/VjNSDwKtGx

— BTCKING555 (@btcking555) July 17, 2020

This attack was followed by a lengthy medium expose, which affected the company after going public.  Commenting on the storm the company found itself trying to break through, Maximilian Martin, head of finance at Northern Data, said:

“It gives the anonymous trolls a power of influence. I’m not concerned because I know we’re no criminals — that’s the biggest point of differentiation. We’re as transparent as it gets.”

This was following the Wirecard scandal which saw over $2 billion disappearing into thin air. Investors in the crypto-focused business suddenly got frozen out of their BTC holdings, and the company subsequently filed for insolvency amid significant staff layoffs.

Although Northern Data has come far after those events, it’s still anyone’s guess how the company plans to navigate in crypto-hostile North America.