EQS-News: Northern Data releases its November 2022 results for the mining business and comments on the outlook
EQS-News: Northern Data AG
/ Key word(s): Cryptocurrency / Blockchain/Monthly Figures
PRESS RELEASE/IR MESSAGE
Key performance indicators
All monthly figures are unaudited and may include rounding and billing differences for cryptocurrency production (in particular, for hosting customers). The company generated unaudited revenues of around EUR 188 million from the provisioning of computing capacity for crypto mining, infrastructure services, and the sale of hardware by the end of November. Northern Data generated 2,614 BTC and corresponding revenues of EUR 74.3 million from Bitcoin mining between January and the end of November 2022. The company plans to have 3.5–4.0 EH/s and thus a total of 36,000–42,000 ASIC miners (excl. hosting) in operation by the end of 2022. In addition, Northern Data still has some 13,000 miners (approximately 1.3 EH/s) in stock that can be ramped up during the coming months depending on the prospects for generating profits. For fiscal year 2022, the company continues to adhere to its earnings guidance of EUR 40-75 million adjusted EBITDA despite the ongoing challenging conditions in Bitcoin mining and the 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 guidance range of EUR 200-250 million, possibly slightly below (5%). Northern Data expanded its Bitcoin mining business in 2022, and successfully held its ground in an environment that simultaneously was impacted by collapsing Bitcoin prices (YTD: -63%), extreme increases in electricity prices, and hashrate highs (YTD: +46%). Given the circumstances, the production of additional computing power for Bitcoins, and thus an increase in revenue, would only have been possible at a cost that exceeded the equivalent value of the Bitcoins produced. Unlike many of its competitors, the company has the advantage of being able to match the operating electricity with the yield of the computing power as it has forward-looking avoided fixed electricity purchase agreements. The company has also been expanding its cloud computing capacity in fiscal year 2022 in a cautious, CapEx-friendly manner. While the opportunities and evolving customer relationships offered by cloud computing are promising, no substantial revenue increases are expected prior to fiscal 2023. Northern Data also intends to intensify its collaboration with NVIDIA to offer even more customers the benefits of Northern Data platforms in conjunction with the NVIDIA technology stack. The EBITDA after adjusting for trading losses of EUR -36 million is expected to fall within the guidance of EUR 40–75 million thanks to careful profit management in Bitcoin mining in the second half of the year. The company’s prudent and flexible management of Bitcoin production has enabled it to confirm its EBITDA forecast despite market-related revenue declines. Northern Data firmly believes that High-Performance Computing (HPC) will — quite literally — determine what the future will hold. HPC has the power to unlock unprecedented potential and opportunities for research and development, business, and government. Our multinational organization is rapidly staking out a position of global significance in the area of GPU- and ASIC-based solutions by designing and operating efficient, green HPC infrastructures. We offer a combination of intelligent, sustainable data centers, cutting-edge hardware and self-developed software for various HPC applications. These include bitcoin mining, blockchain technology, artificial intelligence, big data analytics, IoT, and graphics rendering. The Northern Data Group currently operates custom, large-scale data centers and proprietary mobile high-performance data centers. Jens-Philipp Briemle
07.12.2022 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
Language: | English |
Company: | Northern Data AG |
An der Welle 3 | |
60322 Frankfurt/Main | |
Germany | |
Phone: | +49 69 34 87 52 25 |
E-mail: | [email protected] |
Internet: | www.northerndata.de |
ISIN: | DE000A0SMU87 |
WKN: | A0SMU8 |
Listed: | Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt, Hamburg, Hanover, Munich (m:access), Stuttgart, Tradegate Exchange |
EQS News ID: | 1506657 |
End of News | EQS News Service |
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1506657 07.12.2022 CET/CEST