Rumble, the online video and cloud platform, is preparing to acquire German AI and high-performance computing firm Northern Data in an all-stock transaction valued at about $1.17 billion.
Under the proposed terms, Northern Data shareholders would receive 2.319 Rumble Class A shares for each Northern Data share. If completed, they would hold around 33% ownership of the combined company. The deal is still under negotiation, with no binding agreement in place.
Mining Exit Before Deal Completion
Before the acquisition closes, Northern Data plans to sell its Bitcoin mining business, Peak Mining. Funds from the sale will be used to repay part of a loan from Tether, the issuer of the USDT stablecoin.
Tether already holds investments in both Rumble and Northern Data. Following the deal, it would become Rumble’s largest shareholder, further influencing the company’s direction in AI infrastructure and cloud services.
Boosting AI and Cloud Infrastructure
Northern Data operates GPU-powered data centers and offers high-performance computing for AI workloads. Integrating these resources will allow Rumble to scale its cloud capabilities and compete more aggressively in the AI hosting and GPU cloud market.
Executives from both companies say talks are ongoing and that the final terms could be adjusted. The deal’s success will depend on shareholder approval and regulatory clearance.
Industry watchers suggest that Tether’s backing provides financial security, but the strategic move also reflects a broader trend of crypto-backed firms investing in AI to diversify revenue streams and strengthen market presence.
