Video-sharing platform Rumble is considering an all-stock acquisition of Tether-backed AI and data center operator Northern Data.
Summary
- Northern Data shareholders would receive 2.319 newly issued Class A Rumble shares for each share they tender.
- The company owns five data center sites with potential energized capacity of nearly 850 MW, including a 180 MW facility under development in Georgia.
- Northern Data has also agreed to sell its Peak Mining unit to U.S.-based Bitcoin miner Elektron Energy.
Rumble has reportedly informed Northern Data of its interest in pursuing the acquisition, according to an Aug. 10 press release from the company.
Under the proposal, Northern Data shareholders would receive 2.319 newly issued Class A Rumble shares for each share they tender.
If all outstanding shares are exchanged, they would own roughly 33.3% of the combined company. Rumble stressed that it has not made a final decision to launch the offer, which remains subject to due diligence, negotiations, and regulatory approvals.
Why is Rumble acquiring Northern Data?
Rumble, which initially began as a platform to support independent vloggers and small-scale content creators, has since increasingly expanded into cloud infrastructure and digital asset services to diversify its business and compete with larger tech rivals.
According to the company, the acquisition would transform it into a global AI cloud leader by integrating Northern Data’s GPU-as-a-service platform, Taiga, and its large-scale data center unit, Ardent.
Taiga’s hardware inventory includes around 20,480 Nvidia H100 GPUs and 2,048 H200 GPUs.
Northern Data also owns five data center sites with potential energized capacity of nearly 850 MW, including a facility in Maysville, Georgia, that could reach up to 180 MW once completed.
The proposed terms would be adjusted if certain balance-sheet changes occur before the transaction closes. Chief among them is the planned sale of Northern Data’s bitcoin mining arm, Peak Mining, which Rumble has made a condition of the acquisition.
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The companies said any proceeds from that divestment would be used to repay part of an outstanding shareholder loan from Tether.
On the same day it disclosed Rumble’s potential offer, Northern Data confirmed it had signed a non-binding term sheet to sell Peak Mining to U.S.-based Bitcoin miner Elektron Energy LP for up to $235 million in cash.
The offer includes $175 million upfront, with the rest contingent on performance targets and the transfer of a hardware deposit agreement.
The deal, expected to close in the second half of 2025, would also give Northern Data’s Ardent division the right to participate in potential high-performance computing development at Elektron’s Corpus Christi II site.
This sale has been in motion since October last year, when Northern Data disclosed it was exploring divesting Peak Mining to focus on artificial intelligence solutions.
At the time, CEO Aroosh Thillainathan said the goal was to position Northern Data as a pure-play AI provider, while finding a suitable steward for the mining business.
Tether signals support
Tether, which owns about 54% of Northern Data and invested $775 million in Rumble last year, has reportedly supported its plans to acquire Northern Data and plans to exchange its entire Northern Data stake for Rumble shares at the agreed ratio.
Tether would also become a major Rumble customer under a multi-year GPU purchase commitment and amend the terms of its loan to Northern Data, which would remain outstanding after the deal, the release noted.
Read more: Tether-backed Northern Data explores sale of crypto mining arm to boost AI growth
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
