Northern Data Group, majority-owned by Tether, is considering divesting its Bitcoin mining business, Peak Mining, to focus on enhancing its artificial intelligence (AI) offerings.

This potential sale is part of a strategic shift aimed at reinvesting proceeds into expanding Northern Data's AI capabilities, including building a generative AI cloud platform and acquiring more AI GPUs and data centers.

This move reflects a broader trend among Bitcoin miners to diversify into AI, with Northern Data being one of the first to fully abandon mining.

The decision to divest is likely influenced by a significant drop in mining revenue, which fell from 74% of total revenue at the start of 2024 to just 20% by the third quarter.

Mining revenue also decreased from 22 million euros in the first quarter to 12 million euros in the third quarter of 2024.

CEO Aroosh Thillainathan emphasized the company's commitment to leading in AI innovation and sustainable infrastructure while acknowledging its mining heritage.

Just days before the announcement of the potential sale, Northern Data indicated a shift in focus towards becoming a pure-play AI business.

In the second and third quarters of 2024, Northern Data reported revenues of 26 million euros and 59 million euros, respectively, with significant contributions from its AI and high-performance computing (HPC) segments.

The AI Solutions segment has shown robust growth, reporting three consecutive quarters of revenue increases driven by demand for its Generative AI Cloud platform.

Looking ahead, Northern Data is exploring an initial public offering (IPO) for its AI and HPC branches on the Nasdaq in the first half of 2025.

Proceeds from the potential sale will be used to enhance Northern Data's AI product offerings and support the development of its data center operations.

Details regarding the timing of the sale and the expected financial return remain unclear, as Northern Data has not responded to inquiries.