European Bitcoin mining company Northern Data AG has announced plans to raise €214 million through a 20% capital increase, issuing 10.7 million new shares.
German Bitcoin (BTC) mining company Northern Data AG is set to bolster its operations through a significant capital increase, which is expected to boost its financial reserves by approximately €214 million.
In a press release, the Frankfurt-headquartered company said it plans to issue 10,699,446 new bearer shares, amounting to 20% of its current share capital. This move is expected to fuel the expansion of the company’s cloud platform, and expand its physical data center presence across Europe and the U.S.
The company also aims to use the raised capital to enhance its infrastructure and support advancements in high-performance computing and generative artificial intelligence, according to the press release.
“Management believes that these investments will support the company’s position as a leader in high-performance computing by building the much-needed infrastructure required to power generative AI innovation,” Northern Data stated.
The company notes that the issuance of the new shares will be executed at a price of €20 per share, marking a premium of about 1.7% over the volume-weighted average price in Xetra-trading prior to the announcement. Northern Data also reassured its shareholders, saying “there will be no economic dilution of shareholders who do not participate in the capital increase.”
To facilitate this approach, the Bitcoin miner plans to utilize existing authorized capital, excluding statutory subscription rights of shareholders. The capital increase will be implemented in two stages: initially subscribed by major shareholder Tether and “an entity indirectly owned” by CEO Aroosh Thillainathan, and subsequently, pro rata among other major shareholders who choose to participate.
