Northern Data lost $ 300 million capitalization against the background of the Bafin investigation

The capitalization of the German mining company Northern Data fell by almost $ 300 million after reports of the Bafin investigation against its top managers. The latter are accused of manipulating the market.

Northern Data shares are in the listing of the Deutsche Börse exchange sites. On Friday, October 1, quotes fell by more than 30%. At the time of writing, paper is traded near € 56 – a week ago, their price exceeded € 74.

The capitalization of the company fell below € 900 million. The indicator was estimated at € 1.21 billion at the closing price of September 30.

In a conversation with the Financial Times, the Bafin representative confirmed that the regulator is conducting an investigation related to “potential market manipulations in the context of Nortcharn Data,” but refused further comments.

According to the publication, the company’s heads were charged after the publication of North Data preliminary results for the 2020 financial year. The company announced a loss of € 12.3 million, although an operating profit in the range of € 45-60 million was expected. Revenue amounted to € 16.4 million against the predicted € 120-140 million.

The company itself explained such a gap between the predicted and real numbers by the fact that it “could not realize the revenue from two main customers”.

The representative of the Frankfurt prosecutor’s office also told FT that a complaint was filed against Northern Data – the charges relate to the “potentially misleading special release, published by the company in November 2019”.

Northern Data rejected allegations of market manipulations. The company said that the complaint refers to the announcement of the acquisition of the capacity provider for the mining of the Whinstone US Bitcoin. The latter eventually bought a mining company Riot Blockchain.

Recall that in September 2021, Northern Data concluded a deal with the Bitfield mining company, which involves the purchase of at least 86% of the share and indirect acquisition of about 33,000 https://gagarin.news/ua/news/cro-crypto-what-is-it/ ASIC mainers.

Read the FORKLOG Bitcoin News in our Telegram-cryptocurrency news, courses and analytics.