Video platform Rumble, best known for hosting US President Donald Trump’s Truth Social, is planning an ambitious expansion of its global AI cloud capabilities through the acquisition of German company Northern Data. This potential transaction, valued at approximately $1.2 billion, would give Rumble control of the Taiga cloud business and the Ardent data center arm. This deal would also see Tether, currently the majority owner of Northern Data, become a key stakeholder within Rumble with a new multi-year commitment. This move underscores Rumble’s intention to position itself as an influential player in the global technology space. Video platform Rumble, best known for hosting Donald Trump’s Truth Social, is considering acquiring German company Northern Data to strengthen its global AI cloud capabilities. This transaction, valued at approximately $1.2 billion, would also involve the sale of Northern Data’s cryptocurrency mining business. This article explores the details and potential impacts of this acquisition.Strengthening Rumble’s Cloud Capabilities Rumble, an online video platform, is considering acquiring Northern Data to strengthen its cloud capabilities. The acquisition would include the acquisition of the Taiga Cloud unit and the Ardent hyperscale data center. This layer would expand Rumble’s infrastructure, integrating Nvidia GPU chips such as 20,480 H100s and more than 2,000 H200s, enhancing its artificial intelligence capabilities. Tether’s Role in the Deal Tether is expected to play a central role in this acquisition. Following the transaction, Tether would become a major customer of Rumble, committing to a multi-year purchase of GPUs. In addition, Tether is expected to become Rumble’s largest shareholder, while retaining the majority voting rights of CEO Chris Pavlovski. Tether currently holds a significant stake in both Rumble and Northern Data. Details of Valuation and Exchange OffersThe proposed acquisition would value Northern Data at approximately $18.3 per share, representing a 32% discount to the last closing price in Frankfurt. Northern Data shareholders would receive approximately 2.319 Rumble shares for each share held. Ultimately, they would own approximately 33.3% of Rumble’s shares. Impacts on Cryptocurrency Mining BusinessAs part of this transaction, Northern Data plans to sell its cryptocurrency mining division, Peak Mining. The funds raised would be used to repay a portion of Tether’s existing loan to Northern Data, representing a significant financial commitment. Tether’s Support and Future Uncertainties Tether has expressed its full support for this acquisition. However, the companies clarified that no firm decision has yet been made and that the launch of the offering remains subject to due diligence. Northern Data’s board of directors is open to discussions but has not yet finalized its decision.
