Tether-Supported Possible Purchase of Northern Data by Rumble under Consideration

Cloud computing and AI powerhouse, Rumble, reveals plans to acquire Northern Data, promising a substantial boost in its cloud and AI capacities upon success.

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2025 September 13 . 9:39 AM

2 min read

Contemplating Purchase of Northern Data by Tether-Backed Company, Rumble

Tether-Supported Possible Purchase of Northern Data by Rumble under Consideration

In a significant move that could reshape the cloud and artificial intelligence (AI) landscape, Rumble (NASDAQ: RUM) has announced its intention to acquire Northern Data (ETR: NB2), a leading provider of AI and High-Performance Computing (HPC) solutions.

The potential all-stock exchange offer for 100% of Northern Data's shares is valued at approximately $1.17 billion. This deal represents a 32% discount to Northern Data's last closing price. Rumble is proposing to offer 2.319 shares for each Northern Data share, valuing Northern Data at approximately $18.3 per share.

Tether, Northern Data's majority shareholder, has expressed its approval for the move. Tether's CEO, Paolo Ardoino, voiced his support in a simple tweet. With this acquisition, Tether would become the single largest holder of Class A Rumble shares. If the transaction proceeds on these terms, Northern Data shareholders would own roughly 33.3% of Rumble's shares.

The proposed deal is subject to various conditions, including regulatory and due diligence processes, and the sale of Northern Data's Peak Mining unit to reduce existing debt. The sale proceeds from Peak Mining would be used to partially repay a 575 million euro loan that Tether extended to Northern Data nearly two years ago.

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 search results do not provide specific information about which entrepreneur will become the largest shareholder of Rumble shares through the planned acquisition deal or the current market price of Rumble shares.

The acquisition, if successful, would significantly expand Rumble's cloud and AI capabilities. Rumble's five data centers offer nearly 850 MW of potential energized capacity. Notably, the deal includes the integration of Northern Data's businesses Ardent and Taiga into Rumble's operations.

Ardent is a well-known player in the HPC market, while Taiga is a cloud service with a substantial number of Nvidia GPUs, including 20,480 H100s and 2,048 H200s. If the acquisition goes forward, Tether will become an important customer of Rumble, with a multi-year commitment to purchase GPUs.

According to a company statement, the move aligns with a shared vision between Rumble and Tether to "democratize compute while providing unfettered access to infrastructure." The acquisition is expected to create a powerful combination of Rumble's content platform and Northern Data's HPC capabilities, potentially revolutionizing the tech industry.

The news of this potential acquisition has garnered widespread attention, with industry experts predicting significant changes in the AI and HPC sectors. The deal is expected to close in the second quarter of 2023, pending regulatory approval and the completion of due diligence.