Northern Data AG, a Frankfurt-listed company and a major player in the cryptocurrency mining sector, is making strides toward selling its crypto mining division. The company, backed by stablecoin issuer Tether Holdings Ltd., announced its decision to divest the mining business in October, just weeks before Bitcoin's value surged in response to favorable market conditions following the U.S. election. This rally, which has pushed Bitcoin to near the $100,000 mark, has added significant allure to crypto assets globally.

Elliot Jordan, the Chief Financial Officer of Northern Data, revealed during a presentation at the Deutsches Eigenkapitalforum that the company has hired bankers and is actively fielding offers from potential buyers. While the sale process remains ongoing, Jordan described the interest as “advanced,” with a number of proposals already on the table.

Northern Data's decision to sell aligns with its strategy to refocus on its artificial intelligence (AI) services business, a growing trend among crypto miners following an April Bitcoin software update that reduced mining revenues. Although the company has refrained from putting a specific valuation on its mining division, prior estimates ranged between $300 million and $500 million. However, Jordan noted that these figures predate the recent Bitcoin rally, making it an opportune time for the sale.

Recent market dynamics suggest an even higher valuation could be achievable. Tim Wunderlich, an analyst at Hauck Aufhaeuser Lampe Privatbank AG, estimated that based on peer transactions, Northern Data's mining arm could fetch as much as $800 million in a best-case scenario. This potential windfall underscores the growing value of Bitcoin mining operations amid surging market interest.

The company’s mining arm recently partnered with Penguin Infrastructure Holding to enhance its mining capacity, adding 28 megawatts of power to support an increase in hash rate. Currently, Northern Data contributes 7.9 exahash, which represents nearly 1% of the global Bitcoin mining capacity.

Jordan emphasized the favorable timing of the sale, citing the renewed interest in crypto mining and the broader market rally as key factors driving demand. Proceeds from the sale are expected to strengthen Northern Data’s transition into the AI sector, positioning the company to capitalize on the expanding opportunities in this space.

The ongoing sale process highlights the growing intersection between traditional tech industries and the cryptocurrency market, showcasing how businesses are leveraging asset divestments to adapt and grow in a rapidly evolving digital economy.