Northern Data AG Boosts Capital by 20% with $233M from Tether

Northern Data AG Boosts Capital by 20% with $233M from Tether

On Monday, Northern Data AG announced a plan to increase its share capital by 20%. The company aims to raise €214 million ($233 million) by issuing new shares to enhance its cloud platform and expand data centers in Europe and the United States.

Northern Data AG Announces Capital Increase

Northern Data AG, a Germany-based bitcoin (BTC) mining and data center operator, plans a capital increase. With its supervisory board’s consent, the company will issue 10.7 million new shares, representing 20% of its existing share capital. The shares, offered at €20.00 each, are priced slightly above the average market price.

This move will generate €214 million, which the company will invest in Nvidia graphic processing units (GPUs) and infrastructure to support generative artificial intelligence (AI) innovations.

To ensure participation from major shareholders, Northern Data will structure the capital increase in two steps. Initially, Tether Investments Ltd. and an entity owned by CEO Aroosh Thillainathan will subscribe to shares proportional to their current holdings. Subsequently, the company will offer the remaining shares to other major shareholders on a pro-rata basis.

If any shares remain unsubscribed, a backstop agreement with the investors will ensure the full placement of new shares. Therefore, It will use the proceeds to accelerate growth and enhance its competitive edge in high-performance computing.

Moreover, the new shares will carry full dividend rights from January 2023 and will be listed on the Munich Stock Exchange in the coming weeks.

TL;DR

• Northern Data AG announces a 20% capital increase with a €214 million ($233 million) investment from Tether.