Video-sharing Platform Rumble is considering an All-Stock acquisition of Tether-backed AI and data center operator Northern Data.
Summary
- Northern Data shareholders would receive 2,319 newly published class A Rumble shares for each share they tackle.
- The company owns five data center sites with potential empowered capacity of nearly 850 MW, including a facility of 180 MW developed in Georgia.
- Northern Data has also been agreed to sell his peak mine unit to Bitcoin Miner Elekton Energy to the US.
Rumble has reportedly informed northern data about her interest in pursuing the acquisition, according to a 10 August press release of the company.
According to the proposal, Northern Data shareholders would receive 2,319 newly published class A Rumble shares for each share they tackle.
If all outstanding shares are exchanged, they would have around 33.3% of the combined company. Rumble emphasized that it did not make a final decision to launch the offer, which remains subject to due diligence, negotiations and approvals for legal.
Why does Rumble Getting Northern data?
Rumble, which initially started as a platform to support independent vloggers and small-scale makers of content, has increasingly expanded to cloud infrastructure and digital assets services to diversify and compete with larger technical rivals.
According to the company, the acquisition would be transforming into a global AI cloud leader by integrating the GPU-AS-A-SERVICE platform from Northern Data, Taiga, and its large-scale data center unit.
The hardware inventory of Taiga comprises approximately 20,480 NVIDIA H100 GPUs and 2,048 H200 GPUs.
Northern Data also has five data centers sites with potential empowered capacity of nearly 850 MW, including a facility in Maysville, Georgia, which could reach up to 180 MW as soon as they were completed.
The proposed conditions would be adjusted if certain changes in the balance sheet facility take place before the transaction is concluded. The most important among them is the planned sale of the Bitcoin mining arm of Northern Data, Peak Mining, which Rumble has made a condition for the acquisition.
The companies said that the proceeds from that rejection would be used to repay part of an outstanding loan from Tether’s shareholders.
On the same day it unveiled the potential range of Rumble, northern data confirmed It had signed a non-binding term leaf to sell peak extraction to Bitcoin Miner Elekton Energy LP of the US for a maximum of $ 235 million in cash.
The offer includes in advance $ 175 million, with the rest -contingent on performance goals and the transfer of a hardware deposit agreement.
The deal, which is expected to be closed in the second half of 2025, would also give the fiery division of Northern Data the right to participate in potential powerful computer development on the Corpus Christi Site of Elekton.
This sale has been on the move since October last year, when Northern revealed data, it investigated the repulsion of peak mine construction to concentrate on artificial intelligence solutions.
At the time, CEO Aroosh Thillainathan said that the goal was to position northern data as a pure-play AI provider, while found a suitable steward for the mining company.
Tether signals Support
Tether, which owns around 54% of the northern data and invested $ 775 million in Rumble last year, is reportedly supported his plans to acquire northern data and intends to exchange its entire northern data interest for Rumble shares in the agreed ratio.
Tether would also become a large rumble customer under a multi-year GPU purchasing obligation and change the conditions of his loan to northern data, which are open after the deal, the release noted.
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