Tether-backed Rumble eyes $1.17 billion Northern Data acquisition pending bitcoin mining division selloff, stock jumps 20%

Rumble, the popular video-sharing platform and cloud services provider, announced on Monday its intention to acquire bitcoin miner and high-performance computing specialist Northern Data in a potential €1 billion ($1.17 billion) deal. 

The all-stock transaction would see shareholders receiving 2.319 newly issued Class A Rumble shares for each Northern Data share — giving Northern Data shareholders an approximate 33.3% ownership of Rumble, assuming all shares are tendered.

Tether, which is a 54% majority shareholder of Northern Data, indicated support for the deal and would become the single largest holder of Rumble's Class A common stock at the same ratio, offering a multi-year GPU purchase commitment on closure, according to a statement.

In December, Tether, the world's largest stablecoin issuer, made a $775 million strategic investment in Rumble to help grow the YouTube-alternative platform. "The combined company would emphasize not only AI leadership, but also data privacy and independence on a global scale," Rumble said on Monday.

In a separate press release, Northern Data said it has been informed of the potential exchange offer and is willing to entertain further discussions with Rumble relating to the deal. Rumble Chairman and CEO Chris Pavlovski would continue to own Rumble shares, representing a majority of the voting power of the company. Pavlovski has also expressed support for the offer and said he will vote all his Rumble shares in favor of the transaction.

Northern Data reported strong growth in its H1 2025 financial results on Monday, with revenue increasing by 72% to €94.3 million ($109.8 million) compared to H1 2024. This growth was driven by the success of Taiga Cloud and Peak Mining, with mining revenue rising 49% year-on-year to €53.5 million ($62.3 million) due to increased capacity and higher bitcoin prices.

Rumble's stock has gained 20% in pre-market trading on Monday following the news, according to TradingView, currently changing hands for $9.48.

RUM/USD price chart. Image: TradingView.

Bitcoin mining not included

However, Rumble's offer assumes Northern Data's bitcoin mining division, Peak Mining, will be sold before the transaction is completed. A non-binding term sheet has been signed for the sale of Peak Mining to Elektron Energy for up to $235 million, including $175 million upfront, Northern Data confirmed on Monday. The proceeds from this sale are expected to reduce an existing loan Tether extended to Northern Data, with the remaining loan continuing as Northern Data's obligation under modified terms. Rumble would not take on liability for this loan.

While the bitcoin mining unit is not part of the deal, Rumble remains among the slew of firms launching bitcoin treasury strategies in recent months, accumulating 210.8 BTC so far, according to Bitcoin Treasuries data, worth approximately $25.6 million at current prices. 

Upon completion of the potential acquisition, Rumble plans to integrate Northern Data's Ardent data centers and Taiga GPU-as-a-service business, which includes over 20,000 Nvidia GPUs and significant data center capacity. The deal aims to transform Rumble into a global leader in AI cloud services, enhancing its infrastructure with nearly 850 MW of energized capacity and strategically located data centers, including an anticipated 180 MW capacity in Maysville, Georgia.

The transaction is expected to close in the second half of 2025, subject to customary closing conditions, including the completion of due diligence, final negotiations, and approval from Rumble's board of directors. Additionally, the transaction would require regulatory approvals in both the U.S. and Germany, where Northern Data is listed.

However, Rumble said it has not yet made a final decision to launch the potential offer, and there is no guarantee that the transaction will proceed or that key shareholders, including Tether, will ultimately agree to support it.