Rumble eyes $1,17 billion purchase of Northern Data with Tether backing
- Rumble in talks to acquire Northern Data in billions
- Tether will support the deal and become the largest shareholder.
- Rumble shares surge 20% in premarket trading
Rumble, a video platform and cloud services provider, announced its interest in acquiring Northern Data in an all-stock deal valued at approximately $1,17 billion, excluding the German company's bitcoin mining division. Under the proposed format, Northern Data shareholders would receive 2.319 Class A shares of Rumble for each share held, giving them approximately 33,3% ownership of the combined company.
Tether, which owns 54% of Northern Data, confirmed its support for the transaction and would become Rumble's largest Class A common shareholder. The stablecoin issuer would also commit to purchasing GPUs for several years after the deal closes. In December, Tether had already invested $775 million in Rumble to expand the platform and strengthen its position as an alternative to YouTube. "The combined company would emphasize not only leadership in AI, but also privacy and data independence on a global scale," Rumble said .
Northern Data said it is open to negotiations on the proposal. Rumble CEO Chris Pavlovski will retain the majority of the voting power and has declared his full support for the deal. Northern Data's first-half 2025 results showed revenue of €94,3 million (US$109,8 million), a 72% increase year-over-year, driven by the growth of Taiga Cloud and Peak Mining.
Rumble's offer stipulates that Peak Mining will be sold before the purchase is completed. Northern Data has already signed a term sheet to sell the unit to Elektron Energy for up to $235 million, with $175 million paid upfront. Part of the proceeds will be used to reduce a loan granted by Tether, which will not be assumed by Rumble.
Even outside of the negotiations, Rumble maintains a Bitcoin treasury strategy, with 210,8 BTC on its balance sheet, valued at approximately US$25,6 million. If the deal is finalized, Rumble will incorporate Ardent's data centers and Taiga's GPU-as-a-service business, with over 20.000 Nvidia GPUs and nearly 850 MW of energized capacity.
The transaction is expected to close in the second half of 2025, subject to due diligence, final negotiations, board approvals and regulatory clearances in the US and Germany.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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