Northern Data publishes its November 2022 mining business results and comments on the outlook

EQS-News: Northern Data AG / Key word(s): Cryptocurrency / Blockchain/Monthly Figures
Northern Data publishes its November 2022 mining business results and comments on the outlook
07.12.2022 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

PRESS RELEASE/IR RELEASE

Northern Data publishes its November 2022 mining business results and comments on the outlook

• Bitcoin Hashrate Rises to 3.28 EH/s (+24.2% MoM)

• 210 Bitcoin generated in November 2022: -4.1% MoM due to lower Bitcoin mining luck rate globally

• Bitcoin Earnings of EUR 3.7M: -15.3% MoM (BTC Price Down 21% in November)

• Consolidated sales increase to EUR 188 million (unaudited) at the end of November

• Expectation for the financial year 2022: Confirmation of the adjusted EBITDA range of EUR 40-75m and annual sales at the lower end of the guidance range of 200-250m euros, possibly slightly below (5%)

performance metrics

All monthly figures are unaudited and may include rounding and accounting differences for cryptocurrency production (especially for hosting customers).

Frankfurt am Main – December 07, 2022 – Northern Data AG (XETRA: NB2, ISIN: DE000A0SMU87) today provided an update on its business activities in November 2022 and reported cash proceeds from Bitcoin sales of around EUR 4.1 million in this month alone.

The company generated unaudited sales of around EUR 188 million by the end of November from the provision of computing capacity for crypto mining, infrastructure services and the sale of hardware. Between January and the end of November 2022, Northern Data generated 2,614 BTC and corresponding income of $80 million from bitcoin mining. The company plans 3.5-4.0 EH/s and thus a total of 36,000-42,000 ASIC miners (excluding hosting) in operation by the end of 2022. In addition, Northern Data still has around 13,000 miners (approx. 1.3 EH/s) in stock, which can be ramped up in the coming months depending on the profit prospects.

For the 2022 financial year, the company is sticking to its earnings guidance of EUR 40-75 million adjusted EBITDA despite the ongoing challenging conditions in Bitcoin mining and developments in the cloud business. Despite the challenges and market situation mentioned below, the company now expects revenues generated in 2022 to be at the lower end of the forecast range of EUR 200-250 million, possibly slightly below (5%).

Northern Data grew its bitcoin mining business in 2022, successfully holding its own in an environment impacted simultaneously by collapsing bitcoin prices (YTD: -63%), extreme electricity price spikes and hashrate highs (YTD: +46%). became. . Under the given circumstances, the production of additional computing power for bitcoins and thus an increase in sales would only have been possible at a cost that would exceed the equivalent value of the bitcoins produced. In contrast to many competitors, the company has the advantage of being able to adapt the operating current to the yield of the computing power, since it has foresightedly refrained from fixed power purchase agreements.

Also in the 2022 financial year, the company is expanding its cloud computing capacity cautiously and in a CapEx-friendly manner. While the opportunities and evolving customer relationships cloud computing offers are promising, no significant revenue increases are expected before fiscal 2023. Northern Data also intends to increase its collaboration with NVIDIA to offer even more customers the benefits of Northern Data’s platforms combined with the NVIDIA technology stack.

EBITDA adjusted for trading losses of EUR -36 million should be within the guidance of EUR 40-75 million in the second half of the year thanks to careful profit management in Bitcoin mining. The company’s prudent and flexible management of bitcoin production has enabled it to confirm its EBITDA guidance despite market-driven revenue declines.

Aroosh Thillainathan, CEO and Founder of Northern Data comments: “Our mining strategy enables us to master the current market situation in a more agile, efficient and prudent manner. This is demonstrated by the successful installation of more ASIC miners in November, while many of our competitors were heavily indebted and struggling to survive. However, due to the difficult economy and to prioritize our cash position, we have also held back from investing in growth in recent months. We have thus preserved our liquidity and – at the expense of sales growth – strengthened our strategic ability to act in this challenging market environment. Nevertheless, we confirm our adjusted EBITDA forecast of EUR 40-75 million, although we were hit simultaneously by sharply rising electricity prices, higher prices for commodities and falling cryptocurrency prices in 2022. In addition, we have already proactively continued to simplify our organizational structure and thus significantly reduce our cost structure in order to be able to react flexibly to market developments in 2023 as well. This also affects cloud computing, where sales expectations have been pushed back to 2023, when attractive computing power solutions will be offered to customers in a new and more efficient structure. In this regard, we also look forward to intensifying our strategic collaboration with NVIDIA.”

About Northern Data:

Northern Data firmly believes that High Performance Computing (HPC) – in the truest sense of the word – will determine what the future will bring. HPC is able to unlock unprecedented potential and opportunities for research and development, business and government. Our multinational organization is rapidly taking a position of global importance in the field of GPU and ASIC-based solutions by developing and operating efficient, green HPC infrastructures. We offer a combination of intelligent, sustainable data centers, state-of-the-art hardware and self-developed software for various HPC applications. These include bitcoin mining, blockchain technology, artificial intelligence, big data analytics, IoT, and graphics rendering. Northern Data Group currently operates custom large scale data centers and proprietary high performance mobile data centers.

Investor Relations:

Jens Philipp Briemle
Head of Investor Relations
On wave 3
60322 Frankfurt am Main
Email: [email protected]
Telephone: +49 171 557 6989

12/07/2022 CET/CEST Release of a Corporate News/Financial News, transmitted by EQS News – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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