Rumble Considers All-Stock Acquisition of Tether-Backed Northern Data

Video-sharing platform Rumble is exploring an all-stock acquisition of Northern Data, supported by Tether. This deal could significantly impact both companies by merging their resources in the AI and data sectors.

Key Takeaways

Rumble is contemplating an all-stock acquisition of Northern Data, where shareholders would receive 2.319 Class A shares for each of their shares.
If the deal goes through, Northern Data shareholders would control approximately 33.3% of the combined entity.
Rumble aims to enhance its AI cloud capabilities through Northern Data's technology and infrastructure.
The acquisition is contingent on due diligence, negotiations, and necessary regulatory approvals.
Northern Data is in the process of selling its bitcoin mining division, Peak Mining, which is a prerequisite for the Rumble deal.

Rumble explores all-stock acquisition of Tether-backed Northern Data

Main Content

Rumble, a platform primarily for video sharing, is weighing an all-stock acquisition of Northern Data, a company known for its AI and data center operations, which is backed by Tether. According to a press release dated August 10, Rumble has communicated its interest in pursuing this acquisition to Northern Data.

Under the proposed agreement, shareholders of Northern Data would receive 2.319 newly issued Class A shares of Rumble for each share they own. If all outstanding shares are exchanged, Northern Data investors would hold about 33.3% of the new combined company. Rumble clarified that no final decision has been made to proceed with the offer, as it is still subject to due diligence, negotiations, and regulatory approvals.

Originally focused on supporting independent content creators, Rumble has gradually diversified into cloud infrastructure and digital asset services to better compete with larger tech firms. The company believes this acquisition could establish it as a leader in the global AI cloud market by utilizing Northern Data’s GPU-as-a-service platform, Taiga, along with its extensive data center unit, Ardent. Taiga features a substantial hardware inventory that includes approximately 20,480 Nvidia H100 GPUs and 2,048 H200 GPUs.

Northern Data also operates five data center locations with a potential power capacity of nearly 850 MW. Notably, one of their facilities in Maysville, Georgia, could yield up to 180 MW upon completion. The terms of the proposed acquisition may be adjusted if there are balance-sheet changes before the deal is finalized. A critical component of this negotiation is the anticipated sale of Northern Data’s bitcoin mining branch, Peak Mining, which Rumble has conditioned for the acquisition.

On the same day Rumble's potential offer was announced, Northern Data revealed it had signed a non-binding term sheet to sell Peak Mining to the US-based mining company, Elektron Energy LP, for up to $235 million in cash. The proposed agreement includes an initial payment of $175 million, with additional funds dependent on performance targets and the transfer of a hardware deposit agreement. This sale is expected to close in the latter half of 2025 and would allow Northern Data’s Ardent division to participate in advanced computing initiatives at Elektron’s Corpus Christi II site.

This sale process began last October, as Northern Data explored divesting its mining operations to concentrate on artificial intelligence solutions. CEO Aroosh Thillainathan stated that the aim was to transform Northern Data into a dedicated provider of AI while finding an appropriate caretaker for its mining operations.

Tether, which holds approximately 54% of Northern Data and invested $775 million in Rumble last year, has reportedly endorsed Rumble's initiative to acquire Northern Data. It plans to exchange its entire stake in Northern Data for Rumble shares at the specified ratio and would also become a key customer of Rumble through a multi-year GPU purchase commitment. Furthermore, the terms of Tether’s loan to Northern Data will be adjusted, though it will remain outstanding after the acquisition is complete.

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