Thus, according to the press release, the firm received immediate access to 6,600 active ASIC miners. The deployment of 26,000 brand new miners will be completed by the end of the first quarter of 2022, mainly at facilities in North America.
At the time of the transaction, the Bitfield hashrate is about 0.7 EH/s. After the end of the equipment start-up, the indicator will be approximately 3 EH/s. The computing power managed by Northern Data, including hosting clients, will reach approximately 6 EH/s. The agreement was reached through an exchange of shares in the amount of €400 million. Moreover, it involves the issuance of up to 5.1 million Northern Data securities.
Increasing the number of ASIC miners
The business of the German company includes hosting services for mining equipment. Its own Bitcoin (BTC) and altcoin mining operations, as well as cloud computing. The acquisition of Bitfield will contribute to the vertical integration and creation of added value in the mining industry, taking into account the concept of sustainable development (ESG).
“The company intends to use the free cash flow received as a result of the transaction to invest in further growth. This will include increasing the number of ASIC miners and server systems with a GPU. Expanding the infrastructure of data centers and creating new sites,” the press release says.
The company’s management expects revenue of €180-€220 million in 2021. And profit before taxes in the range of €100-€125 million.
Chinese miners’ dominance is steadily decreasing
In 2019, Northern Data successfully merged with the American company Whinstone US. Which was building a data center for Bitcoin mining with a capacity of 1 GW in Texas. One of its first residents was a subsidiary of the mining company of the Japanese financial giant SBI Holdings.
Recall that in October 2020, Arcane Research analysts concluded that the dominance of Chinese miners is steadily decreasing due to the increase in computing power in other countries, including the United States.
In May 2021, the Chinese authorities announced that they intend to take measures against the industry. During the following month, the governments of several regions ordered the miners to stop their activities.