Europe’s Biggest Crypto Miner Weighs Selling Bitcoin Mining Unit For AI Ambitions

Key Takeaways

• Europe’s most significant Bitcoin mining firm is mulling selling its mining operation to focus on AI.
• The AI boom and the growing difficulty of Bitcoin mining have led many miners to pivot towards AI.
• Several US and European mining firms are investing in AI infrastructure or planning to do so in the future.

Europe’s largest Bitcoin mining firm, Northern Data Group (NDG), is considering selling its crypto mining subsidiary as it pivots towards an ambitious artificial intelligence (AI)-driven strategy.

Northern Data Explores Sale of Peak Mining

According to the company’s announcement , NDG has initiated negotiations with interested parties to sell its crypto-mining subsidiary, Peak Mining.

NDG shared that the sale proceeds would be used to acquire new data centers, purchase GPUs, and develop its AI product platform.

The German firm aims to establish itself as a pure-play provider of AI solutions through the potential sale of Peak Mining.

Its new AI strategy would see the firm invest in Europe’s largest Generative AI Cloud platform and a network of specially designed data centers.

The European mining giant noted that the sale of Peak Mining is contingent upon the current dynamic market environment for cryptocurrencies.

Rosanne Kincaid-Smith, Group COO of Northern Data Group, said the pivot towards AI is a strategic move.

“Our goal is to provide a seamless AI ecosystem where customers can access intelligent, sustainable solutions that enable their businesses to harness AI’s full potential and provide the tools they need to make the breakthroughs that can change the course of history.”

It’s worth noting that Northern Data’s pivot towards AI is not a sudden move, as the company has been investing in AI-focused hardware for months, a trend also observed among other major Bitcoin miners.

In July, the mining company announced plans to raise $233 million  through a stock issuance. NDG aimed to use the funds to boost investments in Nvidia GPUs and expand their high-performance computing infrastructure across Europe and the U.S.

Crypto Miners Are Moving Towards AI

NDG’s pivot towards artificial intelligence is not an isolated move.

In fact, major crypto miners globally are repurposing their existing data centers and mining infrastructure to tap into the AI boom.

Several mining firms, including BitDigital, HIVE, Hut 8, Terawulf, and Core Scientific, have already made the pivot to AI operations or plan to expand into the space.

MARA (formerly Marathon Digital) and Riot Blockchain, two prominent Bitcoin mining firms, have also shifted their focus  towards AI following the halving.

A recent CoinShares report  notes a surge in demand for AI computing and infrastructure capable of supporting the massive workloads required for these novel machine-learning applications.

Data reveals that more miners will migrate to artificial intelligence in energy-secure locations, driven by the potential for higher revenues.

“Our recent mining company management discussions reveal a notable shift, with some miners increasingly turning to AI at their energy-secure sites. Although this trend is relatively new, companies like Hve and Hut 8 report 3.6% and 2.9% of their revenues from AI, respectively, with others also developing AI projects,” CoinShares noted.