Tether-Backed Northern Data in Talks for $1.17B Sale to Rumble: Full Details

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Rumble is eyeing a move that could push it deeper into the global AI race. The U.S. video platform, known for backing independent creators, is considering an all-stock acquisition of Tether-backed Northern Data worth about $1.17 billion.

If the deal happens, Northern Data shareholders would get 2.319 Rumble Class A shares for each of their own, ending up with around 33.3% ownership of the combined company.

The offer is still under discussion and depends on due diligence, negotiations, and regulatory approval.

Rumble Targets Northern Data’s GPU Goldmine

What prompted the proposal? Northern Data’s Taiga Cloud and Ardent data center units.

Taiga holds roughly 20,480 Nvidia H100 GPUs and over 2,000 H200 GPUs – the kind of high-powered chips driving today’s AI boom.

Northern Data also runs five data center sites with potential capacity of nearly 850 MW , including a 180 MW site under development in Georgia. Rumble says bringing this hardware under its wing could turn it into a global AI cloud leader.

Bitcoin Mining Exit Before the Deal

There’s one condition: Northern Data must sell its Peak Mining Bitcoin business before any deal closes. That process is already underway, with a $235 million agreement to sell to U.S. miner Elektron Energy with $175 million upfront and the rest linked to performance targets.

Proceeds from the sale will go toward repaying part of a shareholder loan from Tether, which owns 54% of Northern Data.

Tether’s Full Support

Tether has backed the plan, saying it will swap its Northern Data shares for Rumble stock on the same terms as other shareholders. It also plans to be a major GPU customer for Rumble under a multi-year agreement.

Market Reaction Tells Another Story

Despite the ideas on the table, Northern Data’s stock fell 27% after the news, hitting its lowest level in a year. The offer values the company at about $18.3 per share, a 32% discount to its last close in Frankfurt.

For now, the acquisition is only a possibility but if Rumble moves ahead, it could be interesting to see how such crypto-backed ventures would shape up.