European Bitcoin mining company Northern Data (BTC) saw its stakes fall by 40% within a few days.
The data from Bloomberg showed that the company was trading NB2 below EUR 47 (USD 53.70) in late July, after EUR 79 (USD 90.30) on Monday.
Northern Data: “We are as transparent as possible”
Northern Data, product from a merger of 2019 between the American company Whinstone and Northern Bitcoin, claimed to offer HPC / AI solutions (High Performance Computing / Artificial Intelligence).
While investors and analysts are encouraged to use their computing power, Including well-known German bank investigators, one critic in particular argued that the company actually did mainly engaged in bitcoin mining hosting.
For the well-known research user BTCKING555 Twitter suspected Northern Data didn’t answer basic questions about their business.
Since then, A medium post delivered a longer exposure, causing Northern Data to hit the mainstream media and the stock price to fall.
“It’s a very uncomfortable moment,” commented Maximilian Martin, CFO of Northern Data, to the Financial Times.
“Anonymous trolls have an influence. I’m not worried because I know we’re not criminals, that’s the biggest difference. We are as transparent as possible. “
Northern Data 1 month stock price chart. Source: Bloomberg
Preserve faith according to Wirecard
The middle post disagrees. By questioning everything since income up to prices, also raises doubts about the legitimacy of those who have invested in the company itself, including the well-known crypto companies, SBI Holdings and The Block.
“As such, we came to the conclusion:
1) Northern Data customers pay lower, competitive prices in the industry and the company cooks the books.
2) The company has found the stupidest customers in the crypto industry and milks at most for its enormous gross margin of 40%. “
The debacle is grimly relevant, because it occurs weeks later another German scandal with the financial firm Wirecard.
According to what USD 2 billion was not booked, the company withdrew, and the side effects affected consumers around the world.
All funds connected to Wirecard, such as prepaid debit card funds, suddenly froze. Leave user without your money. As Cointelegraph reported Bitcoin’s debit cards were also affected.
Facing your own difficulties, Northern Data was another example of cryptocurrency trading that outperformed cryptocurrencies. often thanks to roadmaps that contain plans like Execution of an IPO or IPO.
To other companies such as Canaan (NASDAQ: CAN) didn’t do as well, then his share price fell almost 70% until today or around from $ 6 to $ 1.92 at the time of publication.