Bitcoin Miner Northern Data AG Reveals Capital Increase Plan

Northern Data AG, a Germany-based bitcoin (BTC) mining and data center operator, announced a capital increase plan.

Bitcoin miner Northern Data AG (ETR: NB2) has announced a capital increase plan, with the approval of its supervisory board. The company will issue 10.7 million new shares, which represents 20% of its existing share capital. The shares will be offered at €20.00 each, which is slightly higher than the average market price.

This move is expected to generate €214 million, which will be invested in Nvidia graphic processing units (GPUs) and infrastructure to support generative artificial intelligence (AI) innovations.

The capital increase will be structured in two steps to ensure participation from major shareholders. Initially, Tether Investments Ltd. and an entity owned by CEO Aroosh Thillainathan will subscribe to shares proportional to their current holdings.

The remaining shares will be offered to other major shareholders on a pro-rata basis. The announcement further noted that any unsubscribed shares will be backed by a backstop agreement with the investors, ensuring the full placement of new shares.

Northern Data plans to utilize the proceeds to accelerate growth and enhance its competitive edge in high-performance computing. The new shares, carrying full dividend rights from January 2023, will be listed on the Munich Stock Exchange in the coming weeks.

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