Northern Data releases its November 2022 results for the mining business and comments on the outlook

PRESS RELEASE/IR MESSAGE

Northern Data releases its November 2022 results for the mining business and comments on the outlook
 

• Bitcoin hashrate rises to three.28 EH/s (+24.2% month-on-month)
• 210 Bitcoin generated in November 2022: -4.1% month-on-month due to decrease Bitcoin mining luck fee globally
• Bitcoin income of EUR 3.7 million: -15.3% month-on-month (BTC worth dropped 21% in November)
• Group income rises to EUR 188 million (unaudited) as of the finish of November
• Expectation for fiscal yr 2022: Confirmation of adjusted EBITDA vary of EUR 40-75 million and annual income at the decrease finish of the steering vary of EUR 200-250 million, probably barely beneath (5%)

 

Key efficiency indicators

	November ‘22	October ‘22	YTD ‘22
BTC generated	210 YoY: +13% / MoM: -4.1%	219 YoY:+55% / MoM: +28%	2,614
Thereof internet hosting providers (prospects)	9	10	184
BTC bought	227	217	2,794
Self-mining ASIC servers put in	35,808 (3.28 EH/s) MoM: +24%	28,809 (2.64 EH/s) MoM: +11%
Utilization fee self-mining ASIC server	71% (2.25 EH/s)	75% (1.98 EH/s)
Number of ASIC servers Hosting (prospects)	7,728 (0.71 EH/s)	7,728 (0.71 EH/s)
Utilization fee ASIC server Hosting	40% (0.25 EH/s)	35% (0.25 EH/s)

All month-to-month figures are unaudited and might embody rounding and billing variations for cryptocurrency manufacturing (specifically, for internet hosting prospects).

Frankfurt am Main – 07 December 2022 – Northern Data AG (XETRA: NB2, ISIN: DE000A0SMU87) at the moment supplied an replace on its business actions in November 2022, reporting money revenues from Bitcoin gross sales of roughly EUR 4.1 million on this month alone.

The firm generated unaudited revenues of round EUR 188 million from the provisioning of computing capability for crypto mining, infrastructure providers, and the sale of {hardware} by the finish of November. Northern Data generated 2,614 BTC and corresponding revenues of EUR 74.3 million from Bitcoin mining between January and the finish of November 2022. The firm plans to have 3.5–4.0 EH/s and thus a complete of 36,000–42,000 ASIC miners (excl. internet hosting) in operation by the finish of 2022. In addition, Northern Data nonetheless has some 13,000 miners (roughly 1.3 EH/s) in inventory that may be ramped up throughout the coming months relying on the prospects for producing earnings.

For fiscal yr 2022, the firm continues to stick to its earnings steering of EUR 40-75 million adjusted EBITDA regardless of the ongoing difficult situations in Bitcoin mining and the developments in the cloud business. Despite the challenges and market state of affairs talked about beneath, the firm now expects revenues generated in 2022 to be at the decrease finish of the steering vary of EUR 200-250 million, probably barely beneath (5%).

Northern Data expanded its Bitcoin mining business in 2022, and efficiently held its floor in an atmosphere that concurrently was impacted by collapsing Bitcoin costs (YTD: -63%), excessive will increase in electrical energy costs, and hashrate highs (YTD: +46%). Given the circumstances, the manufacturing of extra computing energy for Bitcoins, and thus a rise in income, would solely have been doable at a value that exceeded the equal worth of the Bitcoins produced. Unlike lots of its opponents, the firm has the benefit of having the ability to match the working electrical energy with the yield of the computing energy because it has forward-looking prevented fastened electrical energy buy agreements.

The firm has additionally been increasing its cloud computing capability in fiscal yr 2022 in a cautious, CapEx-friendly method. While the alternatives and evolving buyer relationships provided by cloud computing are promising, no substantial income will increase are anticipated previous to fiscal 2023. Northern Data additionally intends to accentuate its collaboration with NVIDIA to supply much more prospects the advantages of Northern Data platforms together with the NVIDIA know-how stack.

The EBITDA after adjusting for buying and selling losses of EUR -36 million is predicted to fall inside the steering of EUR 40–75 million because of cautious revenue administration in Bitcoin mining in the second half of the yr. The firm’s prudent and versatile administration of Bitcoin manufacturing has enabled it to verify its EBITDA forecast regardless of market-related income declines.

Aroosh Thillainathan, CEO and founding father of Northern Data, comments: “Our mining technique allows us to deal with the present market state of affairs in a extra agile, environment friendly, and prudent method. This is demonstrated by efficiently putting in extra ASIC miners once more in November whereas lots of our opponents had been overindebted and struggling to outlive. However, we too have held again on development investments in latest months as a result of the tough financial system and to be able to prioritize our money place. In this manner, we conserved our liquidity and – at the expense of income development – strengthened our strategic potential to behave on this difficult market atmosphere. We nonetheless affirm our adjusted EBITDA forecast of EUR 40-75 million, regardless of the proven fact that we had been concurrently hit with sharp will increase in electrical energy costs, increased costs for financial items, and declining cryptocurrency costs in 2022. In addition, now we have already proactively continued to simplify our organizational construction, thereby considerably decreasing our price construction in order that we are able to proceed to reply flexibly to market developments in 2023. This additionally impacts cloud computing, the place income expectations have been postponed to 2023 when engaging computing energy options will probably be provided to prospects in a brand new and extra environment friendly construction. In this context, we’re additionally trying ahead to intensifying our strategic cooperation with NVIDIA.”

About Northern Data:

Northern Data firmly believes that High-Performance Computing (HPC) will — fairly actually — decide what the future will maintain. HPC has the energy to unlock unprecedented potential and alternatives for analysis and improvement, business, and authorities. Our multinational group is quickly staking out a place of worldwide significance in the space of GPU- and ASIC-based options by designing and working environment friendly, inexperienced HPC infrastructures. We provide a mixture of clever, sustainable knowledge facilities, cutting-edge {hardware} and self-developed software program for varied HPC purposes. These embody bitcoin mining, blockchain know-how, synthetic intelligence, huge knowledge analytics, IoT, and graphics rendering. The Northern Data Group at the moment operates customized, large-scale knowledge facilities and proprietary cell high-performance knowledge facilities.

Investor Relations:

Jens-Philipp Briemle
Head of Investor Relations
An der Welle 3
60322 Frankfurt am Main
E-Mail: [email protected]
Telephone: +49 171 557 6989