Rumble to Acquire Germany's Northern Data in All-Share Deal

Rumble has announced its agreement to acquire Germany's Northern Data through an all-share offer, enhancing its capabilities in cloud services and artificial intelligence. This acquisition will allow Rumble to expand its infrastructure to better support its platforms, including Truth Social.

Key Takeaways

Rumble will acquire Northern Data in an all-share deal.
Shareholders of Northern Data will receive about two Rumble shares for each Northern Data share.
The acquisition adds one of Europe’s largest GPU fleets and four data hubs.
Major stakeholders, including Tether, have committed to selling their stakes to Rumble.
Tether has also agreed to a $100M advertising deal with Rumble.

Rumble

Rumble's Acquisition of Northern Data

On Monday, Rumble announced that it has reached an agreement to acquire Northern Data, based in Germany, in an all-share transaction. This strategic move aims to strengthen Rumble’s position in the cloud computing and artificial intelligence markets and will also enhance the infrastructure supporting its platform, which hosts Truth Social.

Rumble plans to offer a voluntary public exchange to all shareholders of Northern Data. Those who accept the offer will receive around two shares of Rumble for each share they hold in Northern Data. If all shareholders choose to participate, they could collectively own approximately 30% of the new, combined entity once the acquisition is finalized.

Boosting Rumble's Cloud Business

This acquisition will significantly bolster Rumble's cloud services by incorporating one of Europe’s largest collections of Nvidia graphics processing units (GPUs) alongside a robust network of data centers. Northern Data is equipped with 22,400 Nvidia GPUs, primarily high-end H100 and H200 models, and operates four data centers, including a major facility in Maysville, Georgia, which is expected to offer up to 180 megawatts of power upon completion.

Management teams from both companies have approved the agreement, which has no minimum acceptance condition. Significant shareholders have also committed to participate at the proposed exchange ratio.

Major Stakes Involved

Key investors, including Tether and shareholders connected to co-CEO Aroosh Thillainathan, who hold about 72% of Northern Data’s shares, have pledged to sell their shares to Rumble contingent upon the deal’s completion. The offer includes a possible cash element of up to $200 million for Northern Data shareholders who tender their shares, as well as the committed sellers.

However, any cash payments depend on the achievement of successful sale or commercialization targets linked to Northern Data's former site in Corpus Christi, under the management of an exclusive global infrastructure asset manager. It’s important to note that there is no guarantee that any cash will be disbursed.

Furthermore, Rumble and Northern Data have decided not to enter into a domination or profit and loss transfer agreement for a minimum of three years. Following the closing of the deal, Northern Data plans to discontinue trading of its shares in public markets, eliminating the need for a separate delisting offer.

Strengthening Tether's Role

Upon completion of the acquisition, Tether will become one of Rumble's key customers. Earlier this year, Tether had invested $775 million in Rumble, which assisted in the launch of Rumble Wallet and supported the acquisition of Northern Data.

On the same day, Rumble unveiled a $100 million advertising partnership with Tether. Under this agreement, Tether will allocate $50 million annually for two years to advertise with Rumble, beginning in the first quarter of 2026.

Strategically, acquiring Northern Data aligns with Rumble’s ambitions to enhance its capabilities as a cloud computing provider for video streaming, AI, and Web3 applications. Already, the video platform has relied on its own infrastructure to serve creators and host Truth Social, while increasingly integrating cryptocurrency solutions to boost user engagement.

As of last month, Rumble was also in the process of implementing Bitcoin tipping for its 51 million monthly users, with plans for a rollout in early to mid-December after making necessary enhancements to user experience and addressing final bugs. Additionally, the company is collaborating with MoonPay to provide in-app cryptocurrency wallets and has adopted a Bitcoin treasury model since March, currently holding 211 BTC equivalent to approximately $22.3 million.