Amid a Bitcoin Mining Company Crypto Crisis, Northern Data AG Experiences a 315 Percent Revenue Jump

JAKARTA - Northern Data AG, a German company specializing in Bitcoin mining and cloud computing, has released earnings results for its mining division. Northern Data AG says that in the 2022 fiscal year, they mined 2.798 Bitcoins, up 315% from the previous year.

This led to BTC mining revenue of 77.7 million euros in fiscal 2022. The company sold 3.005 BTC sold in 2022 for an average price of 23.849 euros, contributing to cash revenue of 71.7 million euros.

Data released by Northern Data also shows that they have around 3.6 exahash per second (EH/s) of computing power dedicated to BTC mining. In addition, the company said it expects unaudited consolidated earnings in the range of 190 million to 194 million euros, with "adjusted for trading losses from selling cryptocurrencies" earnings before interest, taxes, depreciation and amortization (EBITDA) of 40 million to 50 million euros.

However, December was a challenging month for Northern Data. The company mined a total of 177 Bitcoins, down 15% from November and down 25% from December 2021. This is due to high energy prices, especially in Europe, which causes ASIC machines used in Europe to set an amount of “downtime” where they cannot produce continuously.

The company said it is relocating ASIC machines to “energy price optimized locations” to ensure production stability and optimal capacity utilization in an effort to reach its production target of 350 BTC per month.

On January 6, Cointelegraph reported that one of the largest Bitcoin mining operations in North America, Marathon Digital Holdings, has been experimenting with overclocking to increase its competitive advantage in the BTC mining industry.

According to an update issued by Marathon Digital Holdings, the technology generated 475 BTC in December, bringing the total Bitcoin mined in the 2022 fiscal year to 4.144 BTC, a 30% increase from the 3.197 BTC produced in the 2021 fiscal year.

Recently, several Bitcoin mining companies have faced challenges due to the increasing difficulty of mining and the price of electricity. This led to a decline in mining profitability and caused some miners to close their operations.

While others have reported significant revenue growth and increased mining power, thanks to better optimization of mining hardware and mining software.