Northern Data Says Revenue to Triple on Cloud Computing Push

(Bloomberg) -- Northern Data, a provider of high-performance computing solutions, forecast revenue could more than triple this year as it expands to meet the needs of surging artificial intelligence demand. 

The Frankfurt-based company expects sales of €200 million ($218 million) to €240 million for the full year, up from €77.5 million in 2023, it said in a statement on Friday. Last year’s revenue topped Northern Data’s earlier forecast of as much as €75 million. 

Northern Data has been weighing a US listing of its combined AI cloud computing and data center businesses, Bloomberg News reported earlier this month, spurring a 31% one-day jump in its shares. Yet the stock has given up all those gains since July 5, when the Financial Times first reported that two former employees had alleged in a lawsuit that Northern Data misrepresented its finances. Northern Data disputed the allegations. 

The firm, whose main investor is stablecoin issuer Tether Holdings, was previously one of the biggest miners of Ether. The Ethereum network underwent a software update in September 2022 that changed how the blockchain transactions are validated, cutting into the revenue of Ether miners. 

Northern Data expects sales to reach €520 million to €570 million in the 2025 financial year, it said. The company said its most recent financial statements were audited by Liebhart & Kollegen and Harris & Trotter.

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