Northern Data sells Texas site to Riot Blockchain Inc. for approximately EUR 550 million in cash and shares – No impact on operating EBITDA guidance for fiscal 2021

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Frankfurt am Main – April 8, 2021 – Northern Data AG (XETRA: NB2, ISIN: DE000A0SMU87) sells its U.S. subsidiary Whinstone US Inc. to Riot Blockchain Inc. The purchase price, after closing of the transaction, consists of a cash payment (cash and debt-free) of approx. EUR 67 million and 11.8 million common shares of Riot Blockchain Inc., which corresponds to a total value of approximately EUR 481 million based on the last Riot Blockchain share price (record date April 7, 2021: USD 48.37). Consequently, the total volume of the transaction amounts to approximately EUR 548 million. Upon closing of the transaction, Northern Data AG will own approximately 12% of the total outstanding common stock of Riot Blockchain Inc.

Accordingly, the reporting of Northern Data AG will continue without the consolidation of Whinstone US Inc. in the future. Special effects from the transaction and effects from the current financial year of Whinstone US Inc. are expected to generate special income for Northern Data in the mid-three-digit million-euro range based on current knowledge, which is expected to be booked in H1 2021. This information is subject to any deviations due to the ongoing conversion of the Group’s accounting from HGB to IFRS. Details on this will be announced shortly in the context of the publication of the Annual Report 2020. The execution of the transaction is also subject to an antitrust review.

The sale of the Texas site and the resulting transaction proceeds will enable Northern Data to accelerate its profitable growth trajectory by further diversifying its global portfolio of sites and more rapidly expanding and developing them for, among other things, the highly profitable operation of its GPU-based HPC cluster. Currently, 6 sites are in operation and 8 more sites are under development.

Due to the strong, profitable growth of the other data center sites the operating EBITDA forecast for 2021 in the order of EUR 100 million to EUR 125 million remains unchanged. The operating EBITDA forecast includes the YTD business performance, but no one-off effects from the transaction and effects from the current fiscal year of Whinstone US Inc. The company now expects to generate revenues in the amount of EUR 285 million to EUR 325 million in fiscal year 2021. Originally, revenues of EUR 350 million to EUR 400 million and EBITDA of EUR 100 million to EUR 125 million were forecast.

Disclaimer

This press release does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities of Northern Data AG and does not constitute a prospectus of Northern Data AG. The information contained in this press release is not intended to form the basis of any financial, legal, tax or other business decision. Investment or other decisions should not be made solely on the basis of this press release. As with all business and investment matters, please consult qualified professional advice. This release and the information contained herein are not for distribution, directly or indirectly, in or into the United States of America, Canada, Australia or Japan.

Press Contact

Dr. Hans Joachim Dürr
Head of Corporate Communications

presse@northerndata.de
+49 69 34 87 52 89

Ir Contact

Jens-Philipp Briemle
Head of Investor Relations

jens-philipp.briemle@northerndata.de
+49 171 557 6989