It wasn’t long ago that Northern Data preferred to present itself publicly as an HPC company and let its Bitcoin commitment fly under the radar if possible. Now, of all places, a major takeover is being reported in this segment. Image and copyright: Slavko Sereda / shutterstock.com.
We have the first days of September and Northern Data, 1.36 billion euros on the stock exchange and officially equipped with NASDAQ plans, keeps its own shareholders and investors waiting for the balance sheet for 2020. Most recently it was said that this would now be presented in September, after long delays and after it was already announced in April that this should only take a few weeks.
Instead, Northern Data is now expanding in an industry that – at least in terms of its external image – was not really wanted to be associated with some time ago: Bitcoin mining, in which there is high competitive pressure and where activities are now being carried out via Takeover expands.
It is an acquisition, with an amount of up to 475 million dollars, anything but a small chunk, which, according to the company, would again “essentially be carried out by means of a capital increase against contribution in kind using the already existing Authorized Capital 2021”. After the recent takeover, there was another significant dilution of the shareholders. For this you get around 33,000 ASIC miners or the majority in the Bitcoin mining company to which these miners belong.
Most recently, the takeover of around 223,000 GPU cards from AMD and Nvidia in over 24,000 server systems for a total of 365 million euros was announced. According to the information, this computing power will be used for HPC applications for Northern Data’s customers. The business partner was the company’s own shareholder Block.One. The payment will be made with 2.3 million shares in Northern Data and an amount of 195 million euros in cash.
Many details about the Northern Data acquisitions remain opaque
As with this previously announced acquisition, Northern Data does not provide any more specific details on the recently announced acquisition that would make the acquisition assessable. It is unclear how high the majority stake will actually be, as well as who the takeover candidate is this time and who is the seller of the shares in this company. Northern Data also does not specify how many new shares are to be issued at what price. According to their own statements, they are still in the examinations and the deal has yet to be confirmed by the supervisory board.
Possible effects on sales and profits also remain nebulous. “Northern Data would generate revenue and EBITDA contributions immediately upon completion of the transaction. The expected positive effects on the forecast for the 2021 financial year will be substantiated with the submission of the 2020 annual report, ”said Northern Data. Incidentally, that was also the case with the last takeover on August 12th.
Many important details from both deals remain intransparent for the investor at the current time, an accusation that has been repeatedly raised against Northern Data. The fact that the balance sheet for 2020 is still not available contributes to this.
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Ticker symbol: NB2
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