Rumble Targets $1.17B Northern Data Acquisition

Rumble, the well-known video-sharing and cloud services platform, announced on Monday its intention to acquire bitcoin miner and high-performance computing company Northern Data in a deal potentially valued at €1 billion ($1.17 billion). This transaction, structured as an all-stock deal, would offer Northern Data shareholders 2.319 newly issued Class A shares of Rumble for each of their shares, potentially granting them a 33.3% ownership stake in Rumble if they surrender all their shares. Tether, which holds a 54% majority stake in Northern Data, has expressed support for this acquisition, positioning itself as the largest holder of Rumble's Class A common stock at the same ratio, along with a commitment for GPU purchases after the deal's closure. Just last December, Tether invested $775 million into Rumble to assist in expanding this alternative to YouTube. Rumble stated, "The merged entity will focus not only on AI leadership but also on maintaining data privacy and independence globally." Northern Data has indicated its willingness to pursue discussions about the deal after being informed of the potential exchange offer. Rumble's Chairman and CEO, Chris Pavlovski, will retain ownership of a majority of the voting power in Rumble and supports the acquisition, intending to vote in favor of it. In its H1 2025 financial report, Northern Data posted a 72% increase in revenue, reaching €94.3 million ($109.8 million) compared to the same period last year. This growth stemmed from successful ventures like Taiga Cloud and Peak Mining, with mining revenue also rising by 49% yearly to €53.5 million ($62.3 million) thanks to increased capacity and higher bitcoin prices. Following this news, Rumble's stock surged 20% in pre-market trading, with shares priced at $9.48 according to TradingView. However, it's important to note that Rumble's offer excludes Northern Data's bitcoin mining division, Peak Mining, which is expected to be sold to Elektron Energy for up to $235 million before the acquisition closes. Northern Data confirmed that a non-binding term sheet is in place for this sale, which will help repay an existing loan from Tether. Despite the lack of liability for Rumble in regard to this loan, it has been active in accumulating bitcoin, owning 210.8 BTC, valued at roughly $25.6 million at current prices, as part of its treasury strategy. If the acquisition finalizes, Rumble aims to merge Northern Data's Ardent data centers and Taiga GPU-as-a-service offerings, which include over 20,000 Nvidia GPUs and substantial data center resources, converting Rumble into a leading player in AI cloud services with around 850 MW of energized capacity, including a planned 180 MW in Maysville, Georgia. The transaction is anticipated to close in the latter half of 2025, subject to standard closing conditions such as due diligence, negotiations, and board approval from Rumble, alongside regulatory clearances in both the U.S. and Germany where Northern Data is listed. Nonetheless, Rumble has not definitively decided to proceed with the potential offer, and there is no assurance that the deal will move forward or receive the necessary support from major shareholders, including Tether.