Exploration of Potential Purchase of Northern Data by Tether-Backed Company, Rumble Discussed
In a significant move, Rumble (NASDAQ: RUM) has announced its plans to acquire Northern Data (ETR: NB2) in an all-stock exchange offer. The proposed deal, valued at approximately $1.17 billion, would see Rumble integrate Northern Data's businesses into its operations, significantly expanding its cloud and artificial intelligence (AI) capabilities.
The proposed offer values Northern Data at approximately $18.3 per share. If the transaction proceeds, Rumble's proposed offer for each Northern Data share is 2.319 shares. This move would make Tether, the majority shareholder of Northern Data, the single largest holder of Class A Rumble shares. Tether currently holds a 54% stake in Northern Data and a 48% stake in Rumble following a $775 million investment in December 2021.
The acquisition would also see Tether become an important customer of Rumble, with a multi-year commitment to purchase GPUs. This commitment includes a substantial number of Nvidia GPUs, including 20,480 H100s and 2,048 H200s, housed in Taiga, a cloud service owned by Northern Data.
The move aligns with a shared vision between Rumble and Tether to "democratize compute while providing unfettered access to infrastructure." This vision is reflected in Ardent, Northern Data's five data centers, which offer nearly 850 MW of potential energized capacity.
If the acquisition goes forward, Northern Data shareholders would own roughly 33.3% of Rumble's shares. The potential offer is subject to regulatory and due diligence processes, and is contingent upon the sale of Northern Data's Peak Mining unit to reduce existing debt.
Rumble, which went public in late 2021 via a SPAC deal, has secured early investments from U.S. Vice President JD Vance and tech billionaire Peter Thiel, among others. The company's platform focuses on empowering content creators and consumers through its decentralized social video platform.
Tether CEO Paolo Ardoino expressed his approval for the move in a simple tweet. The acquisition, if successful, would mark a significant step forward for Rumble in its mission to democratize compute and provide unfettered access to infrastructure.
The proposed deal comes amidst a surge in interest in blockchain technology and AI, with many companies looking to leverage these technologies to drive growth and innovation. The acquisition of Northern Data by Rumble is expected to play a significant role in this space, as both companies look to push the boundaries of what is possible in the realm of decentralized computing and AI.
In conclusion, the proposed acquisition of Northern Data by Rumble represents a significant step forward for both companies. If successful, the deal would significantly expand Rumble's cloud and AI capabilities, while also providing Tether with a steady supply of GPUs for its operations. The deal is expected to close pending regulatory approval and due diligence, and both companies are optimistic about the potential benefits of this partnership.
