Rumble, the video platform, has set its sights on a significant move. It intends to buy Northern Data for a hefty $1.17 billion. This isn’t just a simple buyout; it’s a strategic play backed by Tether, the big name in stablecoins. Tether is already an investor in both Rumble and Northern Data, so this deal brings its portfolio even closer. It looks like Rumble wants to be a major player in artificial intelligence, building on its Bitcoin investments from last year.
This potential acquisition could really shake up the world of AI infrastructure and high-performance computing. Rumble announced its plan to snag 100% of Northern Data’s shares. The proposed deal, valued at about $1.17 billion, would involve an all-stock exchange offer. Rumble shared these details in a recent press release.
Northern Data, based in Germany, offers a range of services. They handle blockchain, cryptocurrency mining, and cloud data solutions. They are especially good at AI and high-performance computing services.
Tether’s Backing for Rumble
The deal is structured as a full stock exchange offer. Northern Data shareholders would get roughly 2.319 Class A shares of Rumble for each of their Northern Data shares. This means Northern Data shareholders would own about 33.3% of Rumble.
Tether, the company behind the popular USDT stablecoin, is central to this deal. They had already invested $775 million in Rumble last year. Tether is also the largest shareholder in Northern Data, holding around 54% of its shares. They have clearly said they support the transaction. Tether commits to selling its stake to Rumble under the exact same exchange terms.
After the deal, Tether would become the biggest holder of Rumble’s Class A shares. However, Chris Pavlovski, Rumble’s CEO and chairman, would keep most of the voting power. Tether also mentioned it will change an existing loan of 575 million euros, about $610 million, given to Northern Data in 2023. This change aims to give the acquired business more financial flexibility.
Rumble’s AI Ambitions
This acquisition would bring Northern Data’s key divisions into Rumble’s operations. One is Taiga Cloud, which provides cloud GPU services. It boasts thousands of Nvidia units, including 20,480 H100 and 2,048 H200 chips. The other is Ardent Data Centers, which has a potential capacity of almost 850 megawatts across five owned sites. This includes one in Maysville, Georgia, which could reach 180 megawatts.
Rumble has stressed that this merger would make the company a “global leader in AI cloud.” They plan to focus on data privacy and independence, fitting their vision of “freedom-first infrastructure.”
However, there’s a catch. The offer assumes Northern Data will first sell its Bitcoin mining unit, Peak Mining. The money from that sale would go towards reducing Northern Data’s debt to Tether. Rumble made it clear they would not take responsibility for any remaining loan. That debt would stay with Northern Data under the modified terms.
Northern Data has confirmed it’s willing to discuss the proposal. But both Rumble and Tether warn that no final decision has been made yet. The deal depends on several things. These include confirming due diligence, getting approval from both companies’ boards, reaching final agreements with Tether and other main shareholders, and getting regulatory approvals in Germany and the United States. There are no binding commitments right now, and the terms could still change.
Part of Tether and Rumble’s Diversification Plans
This announcement is part of a growing partnership between Rumble and Tether. They already work together, including supporting USDT in Rumble’s Bitcoin wallet, which is set to launch in May 2025. Tether, the biggest stablecoin issuer with $127 billion in US Treasury bond holdings, sees this as a chance to “democratize computing.” They want to challenge tech giants in areas like video, cloud, and data storage.
This move highlights how cryptocurrencies and artificial intelligence are coming together. It also shows Tether’s efforts to grow its business beyond stablecoins. They are looking into major innovation areas like AI and sustainable Bitcoin mining.
It also shows Rumble’s commitment to branching out its business. Last November, the video platform announced a plan to invest in Bitcoin for its treasury. They started with an allocation of up to $20 million. That effort was followed by news of developing a Bitcoin wallet with Tether, their main investor.
If today’s reported deal goes through, Tether has promised to be a key customer for Rumble. They would sign a multi-year agreement to buy GPUs. This would strengthen Rumble’s position in the high-performance computing market. Rumble noted that its announcement is not a formal public offer. Investors should wait for official documents for all the final details.