Northern Data AG profits from Bitcoin boom29. Dezember 2020
High-performance computing company Northern Data AG announced in a press release that it plans to further develop existing computing sites and establish new offices.
According to a Dec. 18 press release, the German HPC company plans to invest in new computing power centers and further develop existing ones. Currently, the company is building a huge data center in Texas and also plans to invest in its site in Norway, which has been in operation since 2018. The Frankfurt-based computing service provider offers its customers infrastructural solutions for various HPC applications, including bitcoin mining, blockchain and artificial intelligence. With the rise of bitcoin champion, Northern Data is actually benefiting twice over in the form of base compensation and, in some cases, „performance-based compensation components.“ In July, the company saw its share price plummet after an alleged smear campaign drew harsh criticism of the company’s business model.
In addition to expanding and developing new offices, Northern Data is also working on a new supercomputer, which is expected to be operational by the end of the first quarter. According to the company, the computing power of the planned high-performance computer will be up to 404 petaflops. This would make the computer the second fastest in the world. Only the Japanese top dog Fugaku (537 petaflops) has to admit defeat to the Northern Data specimen.
Experience in bitcoin mining as the basis for success
CEO Aroosh Thillainathan comments on his company’s current situation as follows:
With more than seven years of Bitcoin mining experience and innovative solutions […] Northern Data has a technology edge over the competition like no other company in the market. This is the basis of our success.
With current developments and plans, Northern Data expects revenues of between €350 million and €400 million in 2021. The company expects EBITA to be between 100 and 125 million euros.