According to a December 21 letter to shareholders from the CEO of Aroosh Thillainathan, German Bitcoin

cursors down

Mining company Northern Data expects to generate over $202 million to $206 million in revenue from cryptocurrency mining this year. In the midpoint range, this represents 1.11% growth from Northern Data’s total sales of $202 million for fiscal year 2021, when the company’s revenue increased tenfold from 2020. Thillainathan added:

“Northern Data does not carry financial debt and therefore has a unique opportunity to consolidate and expand our existing BTC mining niche while simultaneously scaling cloud solutions and shared hosting services. We see significant opportunities in our target [high-performance computing] markets.”
The blockchain CEO also mentioned that investors should expect guidance from $43 million to $80 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). In 2021, Northern Data generated $95.2 million in EBITDA, with unadjusted numbers higher due to special effects such as reimbursement from US subsidiary Whinstone’s electricity contracts from weather-related blackouts as well as effects from the sale . from its subsidiary Whinstone.

Thillainathan explained that the overall absence of growth from its business outlook is due to a combination of a “+46% year-to-date [ytd]” increase in the hash rate, “BTC prices are down over 60% year-to-date,” and “sharp increases in the price of electricity”.

Electricity prices in Germany have risen dramatically in the past year. Source: Trading Economics
Going forward, Thillainathan revealed that the company has commissioned approximately 13,000 ASIC miners with corresponding power contracts for the coming months. “Northern Data’s monthly BTC production could indeed be mathematically around 500 BTC (at current mining difficulty). Because with energy costs of around €0.03/kWh, a bitcoin production of around €10,000, and therefore the high profitability at the current BTC price, is not It’s still possible,” the CEO wrote.