Northern Data, a Frankfurt-based technology company known for its Bitcoin mining, recently pivoted its business model to cloud solutions and data center infrastructure. This change has caught the attention of investment bank Berenberg, who has rated the stock a “buy” and set a price target of 39 euros ($41.84) per share, allowing for a 53.2% upside from the current share price as of April 26. It shows gender. Northern Data, which is listed on the Frankfurt Stock Exchange, has three core divisions: Peak Mining for Bitcoin mining, Taiga Cloud for cloud computing, and Ardent Data Center for data center infrastructure. Berenberg believes the market has largely ignored the growth prospects for his Taiga Cloud service. Northern Data shares are traded over-the-counter in Italy and the United States, but trading frequency and volume are expected to be very low. NB2-DE 1Y Line This is not the first business transformation for the company, which went public in 2015. The company, previously known as Biosilu Healthcare, was a pharmaceutical broker for the Asian market until early 2018. After that, we shifted our focus to the virtual currency mining business. It was then renamed Northern Bitcoin, making it one of the earliest publicly traded companies to enter the crypto scene. In its current form, Northern Data continues to evolve, including the acquisition of a Pittsburgh data center earlier this year. The company announced that it will quadruple its facility by the second half of next year. Northern Data is also expected to benefit from the advances its subsidiary Ardent Data Centers has made in liquid cooling technology in the cryptocurrency mining business over the years. Analysts at Berenberg said: “Northern Data’s significant investment in the latest liquid-cooled mining technology and the company’s expansion at existing locations in North Dakota and Texas have led to strong growth in Bitcoin production and mining. “We believe we can achieve profitability,” the analyst said. Gerhard Orgonas and Jenna Xu said in his April 25 note to clients: “We believe Northern Data's expertise in energy-efficient, state-of-the-art, water-cooled data centers makes it a competitive provider of colocation services, especially in situations where: increasing efficiency requirements for generative AI applications; ” The investment bank estimates that by next year Peak Mining will achieve revenues of more than 170 million euros, with adjusted margins of more than 40%. But it's Northern Data's cloud solution that has analysts paying attention. The company's Taiga cloud division has been certified as an Nvidia “elite” partner, making it one of the largest providers of Nvidia-based cloud services in Europe. The investment bank expects Taiga Cloud to generate annual revenue of approximately 400 million euros and adjusted profit of approximately 290 million euros from 2026 onwards. Northern Data's cloud computing platform will be equipped with 20,000 Nvidia AI chips worth 730 million euros by the third quarter of 2024, according to the memo. Northern Data founder and CEO Allush Thillainathan also expressed his confidence in the company by announcing plans to acquire up to €30 million worth of shares this year. The company announced that as of March 21, Mr Thillainathan's stake in Northern Data Group had increased to 3.8 million shares, representing approximately 7.15% of the company's current share capital.
