Video-sharing platform Rumble is exploring an all-stock acquisition of Northern Data, an AI and data center operator backed by Tether.
According to a press release dated August 10, Rumble has notified Northern Data of its interest in pursuing the deal.
The proposed offer would give Northern Data shareholders 2.319 newly issued Class A Rumble shares for each Northern Data share they tender.
If all outstanding shares are exchanged, Northern Data shareholders would own approximately 33.3% of the combined company.
Rumble emphasized that no final decision has been made to proceed with the offer, which is still subject to due diligence, negotiations, and regulatory approval.
What is Rumble’s reason for acquiring Northern Data?
Rumble, which started as a platform supporting independent vloggers and small content creators, has gradually expanded into cloud infrastructure and digital asset services to diversify its business and better compete with larger tech companies.
The company says the acquisition would position it as a global leader in AI cloud services by integrating Northern Data’s GPU-as-a-service platform, Taiga, along with its large-scale data center operations under the Ardent division.
Taiga’s hardware includes approximately 20,480 Nvidia H100 GPUs and 2,048 H200 GPUs.
Northern Data owns five data center facilities with a combined potential energized capacity of nearly 850 MW, including a site in Maysville, Georgia, which could reach up to 180 MW once fully operational.
The terms of the acquisition would be adjusted if there are changes to Northern Data’s balance sheet before closing, particularly related to the planned sale of its bitcoin mining unit, Peak Mining, which is a condition set by Rumble for the deal.
Any proceeds from this divestment are expected to be used to repay an outstanding shareholder loan from Tether.
On the same day Rumble announced its potential offer, Northern Data confirmed signing 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 remainder contingent on performance milestones and the transfer of a hardware deposit agreement.
The deal, expected to close in the second half of 2025, would also grant Northern Data’s Ardent division the right to participate in potential high-performance computing projects at Elektron’s Corpus Christi II site.
This sale has been underway since October of last year, when Northern Data announced plans to divest Peak Mining in order to focus exclusively on AI solutions.
At that time, CEO Aroosh Thillainathan explained the goal was to transform Northern Data into a pure-play AI provider while finding the right partner to manage the bitcoin mining business.
Tether signals support
Tether, which holds approximately 54% of Northern Data and invested $775 million in Rumble last year, has reportedly backed Rumble’s plan to acquire Northern Data. Tether intends to exchange its entire Northern Data stake for Rumble shares at the agreed-upon ratio.
Additionally, Tether is set to become a key Rumble customer through a multi-year GPU purchase agreement and will amend the terms of its loan to Northern Data, which will remain outstanding following the transaction, the release stated.
