Northern Data has announced that it will acquire up to 100% of the entire equity stake in Bitfield N.V., a Bitcoin mining company. The terms of the acquisition have also led Northern Data purchasing 33,000 ASIC miners.
In the announcement, Northern Data stated that the acquisition would not involve anything less than 86% of the company’s stake. The acquisition came with a total enterprise value of around 400 million euros, as the two companies had already submitted signatures for purchase agreements with leading shareholders.
Acquisition Involved ASIC Miners
The press release also stated that the terms of the acquisition also came with the purchase of 33,000 ASIC miners. It also involved purchasing the mining firm’s hardware, inclusive of 6600 ASIC mining rigs that were already installed and operating in different data centres situated in the United States.
Northern Data possesses high-performance mobile data centres in the U.S., and these will be instrumental in helping both companies achieve their goals. The firm has also added that the ASIC miners in Canada and the U.S. that were also acquired during the deal will be installed by the end of Q1 2022.
Commenting on this acquisition, the Founder and CEO of Northern Data AG, Aroosh Thillainathan, stated that, “The takeover of Bitfield is an important pillar of our scalable growth strategy. With this acquisition, we add Bitcoin mining to our three existing businesses – Bitcoin hosting and services, altcoin mining, and cloud computing – and achieve an even greater increase in value, not least of all because of the trend in mining profitability. For me, it is a great pleasure to welcome the great team in Bitfield to Northern Data, and I am excited to pursue our success story together.”
Increase in Mining Exahashes
After the ASIC miners have been installed successfully, the computing power of Bitfield will reach around three exahashes. On the other hand, Northern Data will have around six exahashes of mining capacity. Northern Data also stated that 10,000 ASIC miners would be delivered to Digihost, Northern Data’s hosting customer, by the end of 2021.
Northern Data has been actively involved in strategic partnerships to boost its user base. In 2020, Northern Data entered into a partnership with SBI Crypto, a subsidiary firm of SBI Holdings in Japan. SBI Crypto is a firm that operates to enhance digital asset mining activities. The partnership allowed Northern Data to expand its crypto mining activities.