5 Minutes
Rumble proposes all-stock takeover of Tether-backed Northern Data
Rumble has notified Northern Data that it is exploring an all-stock acquisition aimed at combining Rumble's video and cloud ambitions with Northern Data's large-scale AI and data center infrastructure. Under the preliminary proposal, Northern Data shareholders would receive 2.319 newly issued Class A Rumble shares for each Northern Data share tendered. If every outstanding share is exchanged, former Northern Data owners would hold approximately 33.3% of the combined company.
Rumble emphasized that no final decision has been made. The potential offer remains conditional on due diligence, ongoing negotiations and regulatory approvals, and the terms could be adjusted if key balance-sheet events occur prior to closing.
Strategic rationale: from video platform to AI cloud and crypto infrastructure
Rumble began as a video-sharing platform for independent creators but has steadily diversified into cloud infrastructure and digital asset services to expand revenue streams and compete with larger tech companies. The acquisition of Northern Data would accelerate that pivot by adding two major assets: Taiga, a GPU-as-a-service platform, and Ardent, a high-capacity data center business.
Taiga's hardware inventory reportedly includes roughly 20,480 Nvidia H100 GPUs and 2,048 H200 GPUs — a significant GPU base for training large AI models and providing high-performance compute (HPC) services. Northern Data also owns five data center sites with potential energized capacity approaching 850 MW, including a Maysville, Georgia facility that could reach up to 180 MW when completed.
By integrating Taiga and Ardent, Rumble says it could position itself as a global AI cloud leader, offering GPU-as-a-service, enterprise AI hosting, and related managed infrastructure — services that align closely with current market demand for cloud GPUs and edge computing.
Peak Mining sale is a condition; proceeds to reduce Tether loan
A key condition of Rumble's proposed deal is the divestment of Northern Data's bitcoin mining unit, Peak Mining. Northern Data confirmed it signed a non-binding term sheet to sell Peak Mining to U.S.-based miner Elektron Energy LP for up to $235 million in cash. The structure includes $175 million upfront, with the remainder contingent on performance milestones and a hardware deposit agreement. The transaction is expected to close in the second half of 2025.
Any proceeds from the Peak Mining sale would be used, at least in part, to repay outstanding shareholder loans from Tether, which currently holds about 54% of Northern Data. This balance-sheet cleanup could lead to revised share-exchange terms if material adjustments occur before closing.
Tether backs the move and could become a major Rumble customer
Tether — already a major Northern Data shareholder and an investor in Rumble — reportedly supports the proposed transaction. Tether invested $775 million in Rumble last year and has indicated plans to swap its entire Northern Data stake for Rumble shares at the agreed exchange ratio.
Beyond equity, Tether would become a significant Rumble customer through a multi-year GPU purchase commitment and would agree to amended loan terms with Northern Data that would remain outstanding post-transaction. That commercial relationship could secure steady demand for Taiga's GPU capacity and signal institutional support for Rumble's cloud ambitions.
Timeline, approvals and market implications
The deal remains exploratory. Rumble and Northern Data must complete due diligence, finalize negotiated terms and obtain necessary regulatory clearances. The Peak Mining sale, anticipated in H2 2025, is a material step for the proposed merger to proceed on the current terms.
If consummated, the combination would create a company with a substantial GPU fleet, large-scale data center capacity and customers anchored by institutional partners like Tether — an outcome that could shift the competitive landscape for AI cloud, HPC and certain crypto infrastructure services. Investors and the crypto community will be watching for regulatory feedback, balance-sheet adjustments and final approvals before the proposal becomes binding.

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