What you need to know about Northern Data’s planned IPO

The bitcoin mining company Northern Data is planning an IPO together with the Swiss investment bank Credit Suisse.

According to information from Bloomberg , the German company Northern Data is planning another IPO. The company wants to raise up to $ 500 million. The company works with Credit Suisse . The Swiss investment bank should help to implement the IPO.

Credit Suisse declined to issue an official statement on participation in the IPO. As is known from media reports, Credit Suisse was one of the IPO supporters of the Bitcoin mining company in 2019 . At that time, however, the bank decided not to cooperate. Probably because of failed contract award negotiations. It can be assumed that Northern Data and Credit Suisse will have successfully concluded their negotiations when the IPO takes place.

What is Northern Data?

The company is headquartered in Frankfurt am Main. Northern Data operates mining data centers around the world in areas with cheap electricity. The largest mining facility is in Rockdale, Texas. This is one of the world’s largest crypto mining facilities. A capacity of one gigawatt hour is to be created there by the end of 2021.

Northern Data has been listed as a non-publicly traded share in Germany since 2015. Over the past year, the company’s share price has risen more than 300%. At the time of the announcement of the planned IPO, the share price was 112 euros . Since then, the price has fallen by more than 11 percent. This is very likely to be related to the sharp fall in the price of the crypto market .

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A notable shareholder in the company is the Cryptology Asset Group with Christian Angermayer and Mike Novogratz. In addition, EOS developer Brendan Blumer involved in Northern Data.

Problems with whistleblowers

Northern Data suffered a severe market slump in 2019. The trigger was a controversial tweet. During a business presentation, the company was unable to answer questions about doing business in America. The investigative Twitter user behind the pseudonym “BTCKING555” drew attention to this problem.

Many investigative media reports followed this tweet. Unfortunately, the controversy arose shortly after the Wirecard scandal. The media landscape was very tense with regard to German (fin) tech companies. The reports were accordingly critical.

“Anonymous trolls are given power to influence. I’m not concerned because I know we’re not criminals – that’s the biggest difference. We are as transparent as we can get, ”commented Maximilian Martin, Northern Data’s CFO. In doing so, he wanted to distance the company from comparisons with Wirecard.

Northern Data has done well since the controversy. However, it remains uncertain how the company will find its way in the North American market.

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