Northern Data releases December 2022 results for Mining division

EQS-News: Northern Data AG / Keyword(s): Monthly figures
Northern Data releases December 2022 results for Mining division
11.01.2023 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

PRESS RELEASE / IR MESSAGE

Northern Data releases December 2022 results for Mining division

• Northern Data generated a total of 2,798 BTC in FY2022, a 315% year-over-year increase.

• In fiscal year 2022, BTC mining revenues are 77.7 million euros

• The average price of 3,005 BTC sold in 2022 was €23,849, generating €71.7 million in cash.

• Northern Data has about 3.6 EH/s of managed computing power for BTC mining

• FY2022 outlook (unaudited): Adjusted EBITDA in Euro range 40-50 million, annual income in the range of 190-194 million euros

Key Performance Indicators

All monthly figures are unverified and may include rounding and calculation differences for cryptocurrency production (especially for receiving customers).

Frankfurt am Main – 11. January 2023 – Northern Data AG (XETRA: NB2, ISIN: DE000A0SMU87) today provided an update on its business activities in December 2022. A total of 177 Bitcoins were mined in the last month of the year. Partly due to high energy prices, particularly in Europe, ASIC machines deployed in Europe were subject to a defined “interest time” and could not produce continuously. The company is in the process of moving these ASIC machines to locations optimized for energy prices; this will ensure production stability and optimal capacity utilization that will better support the targeted production of 350 BTC per month. In December 2022, approximately 3.0 million euros were generated from the sale of Bitcoin.

The company installed 4.02 EH/s (3.31 EH/s self-mining + 0.71 EH/s hosting) or 43,822 ASIC miners by the end of December 2022. Northern Data generated a total of 2,798 BTC from January to the end of December 2022. , generated €77.7 million in Bitcoin revenue alone.

Northern Data AG expects fiscal 2022 unaudited consolidated revenues in the range of EUR 190-194 million and EBITDA adjusted for a EUR 40-50 million (unaudited) trading loss from the sale of cryptocurrencies.

2022 Challenging environment for crypto mining

In 2022, bitcoin mining experienced a sharp drop in Bitcoin prices, especially in the middle of the year (January 1 – December 31: -58%). In addition, extreme increases in energy prices and hashrate (Jan 1-Dec 31: +164%) caused further downward pressure. Northern Data has nevertheless managed to grow its Bitcoin mining business in this challenging environment and is consistently profitable thanks to efficient mining practices and favorable structured power contracts.

Northern Data has c. 13,000 miners (about 1.3 EH/s) ready to deploy. In 2023, the company is confident of continuing to mine profitably at scale and is working on further optimization of power contracts, which could significantly increase monthly BTC production from the targeted 350 BTC and potentially 500 BTC.

Cloud capacity has been expanded

In fiscal 2022, Northern Data also expanded its cloud computing capabilities in line with capital, and expects its cloud business to expand significantly in 2023 alongside Bitcoin mining.

Aroosh Thillainathan, CEO and Founder of Northern Data, comments, “We are looking ahead to an eventful 2022. In particular, after the Bitcoin price crash in June, we have re-aligned our mining strategy. This includes immediate sales of emerging coins and switching miners on and off flexibly to make the most of the changing energy. transaction costs as well as current Bitcoin price. We preferred to stabilize our cash reserves by changing investments. With these measures, we started 2023 safe and free from any financial debt. At the same time, we reduced costs and even ensured stable operations. The price of Bitcoin continues to fall. Of the opportunities that every crisis brings We are watching the market very carefully on the eve of taking advantage.”

About North Data:

Northern Data strongly believes that High Performance Computing (HPC) will define what the future holds. HPC has the power to unlock unprecedented potential and opportunities for research and development, business and government. Our multinational organization is rapidly establishing a global presence in GPU and ASIC-based solutions by designing and operating efficient, green HPC infrastructures. We offer a combination of intelligent, resilient data centers, advanced hardware and proprietary software for a variety of HPC applications. These include bitcoin mining, blockchain technology, artificial intelligence, big data analytics, IoT and graph rendering. Northern Data Group currently operates dedicated, large-scale data centers and dedicated mobile high-performance data centers.

Investor Relations:

Jens-Philipp Briemle
Head of Investor Relations Department
An der Welle 3
60322 Frankfurt am Main
Email: jens-philipp.briemle@northerndata.de
Phone: +49 171 557 6989

11.01.2023 CET/CEST Corporate News Release, 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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