Crypto Miner Northern Data Expects $206M as Revenue in 2022

A letter sent by German Bitcoin (BTC) mining company Northern Data through Aroosh Thillainathan, the Chief Executive Officer (CEO) to its stakeholders revealed that the firm has no financial debt at this time.

Northern Data expects to generate between €190 million to 194 million which is approximately $202 million to $206 million from crypto mining operations at the end of the year. 

“Northern Data is not carrying financial debt and therefore has access to the unique opportunity to consolidate and expand our current position in BTC mining while scaling cloud solutions and colocation services in parallel. We see significant opportunities in the HPC [high-performance computing] markets we are targeting,” the letter outlined.

From the company’s projection, the revenue should grow by 1.11% compared to what it was last year.

This is a significant growth in comparison to the tumult that the general crypto industry has experienced this year. For the mining industry, there has been a sharp plunge in Bitcoin price, an increase in electricity cost, and an increase in the global BTC hash rate.

Amidst all these troubles, the German mining facility believes that its projection can be achieved “Because with energy costs of around EUR 0.03/kWh, the production of a Bitcoin for around EUR 10,000, and therefore high profitability at the current BTC price, is still possible.”

Before the close of the year, Northern Data affirms that investors should expect earnings between $43 million to about $80 million aside from interests, tax, depreciation, and amortization (EBITDA). 

Core Scientific Faces Financial Troubles

Sadly, Core Scientific does not share in Northern Data’s optimism about its 2022 crypto mining revenue.

The BTC miner has been in so much trouble in the last few days following the inability to cater to its operational cost and has been seeking capital from creditors to save face. Eventually, an investment firm and crypto lender B. Riley had indicated interest to provide Core Scientific with $72 million in non-cash financing which was to come with favorable conditions.

At first, its market stock jumped up to 200% at the news of the external financing but later began to plummet steadily. Presently, the miner has filed for Chapter 11 bankruptcy in Texas.