According to a new shareholder letter published on December 21, Aroosh Thillainathan, CEO of German Bitcoin (BTC) mining company Northern Data said the firm expects to generate more than $202 million to $206 million in revenue from cryptocurrency mining operations this year.. In the midpoint range, this represents 1.11% growth from Northern Data’s total sales of $202 million for fiscal 2021, when the firm grew its revenue tenfold from 2020. Thillainathan added:
“Northern Data has no 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 HPC markets [computación de alto rendimiento] what we’re aiming for.”
The blockchain CEO also stated that investors should expect guidance of $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 figures even higher due to special effects such as repayments of US subsidiary Whinstone’s electricity contracts for weather-related power outages, as well as the effects of the sale of its subsidiary Whinstone.
Thillainathan explained that the large lack of growth in his business forecasts is due to a combination of an increase of “+46% YTD [año hasta la fecha]” in the hash rate, “BTC prices are down more than 60% since the beginning of the year” and “extreme increases in electricity prices.”
Looking ahead, Thillainathan revealed that the company had commissioned some 13,000 application-specific integrated circuit (ASIC) miners with their corresponding power contracts in the coming months.. “Northern Data’s monthly production of BTC could already mathematically be around 500 BTC (with the current mining difficulty). Because with energy costs of about 0.03 euros/kWh, the production of a Bitcoin for about 10,000 euros, and therefore high profitability at the current BTC price, is still possible,” the CEO wrote.
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