Northern Data Acquisition Sparks Rumble’s AI Growth

Technology firm Rumble has declared its plan to acquire Northern Data through a stock-for-stock deal estimated at $1.165 billion. The acquisition proposal involves exchanging 2,319 new Rumble Class A shares for each Northern Data share. With full acceptance, Northern Data’s investors would acquire an approximately 33.3% ownership stake in Rumble. Tether, the company behind the leading stablecoin USDT and holding 54% of Northern Data’s shares, has expressed its approval of the offer. After the transaction, Tether is set to become Rumble’s largest Class A stakeholder. This announcement propelled Rumble’s stock by 20% to $9.48 in pre-market trading.

What Is the Next Step for the Acquisition?

Rumble has indicated that achieving leading status in AI cloud services, while maintaining data privacy and autonomy on a global scale, will be the main focus of the combined entity. Chris Pavlovski, Chairman and CEO of Rumble, communicated his commitment to maintaining primary voting influence in the company and positively backing the offer.

Completion of the acquisition awaits the green light from Rumble’s board alongside the resolution of final talks and rigorous due diligence activities. A solid increase in Northern Data’s interim revenue, reaching $109.8 million in H1 2025, fuels optimism for collaboration, led by Taiga Cloud and Peak Mining operations. Specifically, mining activities have seen a 49% revenue uptick, driven by higher output and recovering Bitcoin values.

How Will Northern Data’s Mining Division Be Handled?

A condition of the deal requires Northern Data to dispose of its Bitcoin mining unit, Peak Mining, before concluding the transaction. A preliminary agreement for its sale to Elektron Energy could fetch up to $235 million, aimed at settling Tether’s existing financial obligation to Northern Data, with the remainder maintained under adjusted conditions. Rumble will not bear any liability for this credit.

Despite divesting mining operations, Rumble supports a strategic Bitcoin treasury policy, presently holding 210.8 BTC valued at approximately $25.6 million. Upon closing, the merger envisions incorporating Northern Data’s Ardent data centers and Taiga GPU services into Rumble’s architecture, which encompasses more than 20,000 Nvidia GPUs and roughly 850 MW of resource capacity. An additional 180 MW expansion is prepared for Maysville, Georgia. The target completion is expected in the latter half of 2025, subject to clearance from regulatory bodies in the U.S. and Germany.

“Securing approval for the proposal is key to enhancing our strategic goals in AI cloud infrastructure,” stated Rumble’s spokesperson.

Key points considered in this strategic move include:

• The acquisition is centered around expanding Rumble’s reach and capabilities in AI and cloud services.
• Rumble plans to dispose of Peak Mining to streamline operations and focus on its core objectives.
• The involvement of Tether as the primary stakeholder positions it to play a significant role in Rumble’s future direction.
• Completion of the deal is anticipated in 2025, contingent on requisite approvals.

This acquisition is set to redefine Rumble’s trajectory, emphasizing synergy with Northern Data’s assets to amplify AI cloud service capabilities and advance strategic global positioning. This move mirrors the evolving dynamics of technology integrations and partnerships in the digital sector.