German Bitcoin mining business Northern Data plans to earn upwards of $202 million to $206 million in income from crypto-mining operations this year, according to a letter to shareholders from CEO Aroosh Thillainathan dated Dec. 21. This, at the midpoint, implies an increase of 1.11% above Northern Data’s total sales of $202 million for the fiscal year 2021, when the company’s revenue increased tenfold from the previous year. Added Thillainathan:
Investors should anticipate forecasts of $43 million to $80 million in adjusted earnings before interest, taxes, depreciation, and amortisation, according to the blockchain CEO (EBITDA). Northern Data generated $95.2 million in EBITDA in 2021, with non-adjusted statistics being significantly higher as a result of one-time events such payments from Whinstone’s US company’s electricity contracts for weather-related power shortages and the consequences of selling its Whinstone business.
“Since Northern Data has no debt, we have the exclusive opportunity to strengthen and grow our current position in Bitcoin mining while scaling cloud solutions and colocation services concurrently. The markets for HPC [high-performance computing] that we are focusing on have considerable prospects.
Thillainathan stated that a combination of a “+46% YTD [year to date]” increase in hash rate, “BTC prices down over 60% since the beginning of the year,” and “severe increases in electricity bills” is the cause of the overall absence of growth from its business projections.
Thillainathan then disclosed that the business had contracted 13,000 application-specific integrated circuits (ASIC) miners with associated power contracts for the upcoming months. Mathematically, Northern Data’s monthly BTC production may already be about 500 BTC (at the current mining difficulty). Since the manufacturing of a Bitcoin may still be done for roughly EUR 10,000 with energy expenses of about EUR 0.03/kWh, great profitability at the present BTC price is still feasible, the CEO stated.
- Northern Data claims to be bitcoin miner with no debt and revenue projections of $204 million for 2022
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