European Bitcoin mining company Northern Data AG has announced plans to raise €214 million through a 20% capital increase, issuing 10.7 million new shares.

Northern Data AG’s Capital Increase Plan

German Bitcoin mining company Northern Data AG is set to bolster its operations through a significant capital increase, which is expected to boost its financial reserves by approximately €214 million. In a Jul. 15 press release, the Frankfurt-headquartered company stated its plan to issue 10,699,446 new bearer shares, amounting to 20% of its current share capital. This move is aimed at fueling the expansion of the company’s cloud platform and expanding its physical data center presence across Europe and the U.S.

Enhancing Infrastructure for High-Performance Computing

The company also aims to use the raised capital to enhance its infrastructure to support advancements in high-performance computing and generative artificial intelligence. According to the press release, the management believes that these investments will support the company’s position in high-performance computing by building the necessary infrastructure required to power generative AI innovation.

New Shares Issuance Details

Northern Data notes that the issuance of the new shares will be executed at a price of €20 per share, marking a premium of about 1.7% over the volume-weighted average price in Xetra-trading prior to the announcement. The company reassured its shareholders, stating,

“there will be no economic dilution of shareholders who do not participate in the capital increase.”

To facilitate the approach, the Bitcoin miner plans to utilize existing authorized capital, excluding statutory subscription rights of shareholders. As a result, the capital increase will be implemented in two stages: initially subscribed by major shareholder Tether and “an entity indirectly owned” by CEO Aroosh Thillainathan, and subsequently, pro rata among other major shareholders who choose to participate.

Revenue Projections and Future Plans

The capital infusion announcement follows Northern Data’s recent projection of tripling its revenue in 2024, emphasizing its commitment to expanding high-performance computing solutions. According to its audited 2023 financial results, the company anticipates sales reaching up to €240 million this year, marking a threefold increase from the previous year.

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