Rumble explores all-stock acquisition of Tether-backed Northern Data

The Rumble video sharing platform envisages an acquisition entirely in stock of Northern Data, supported by stocks and data from the data center.

Rumble would have informed the data from the North of its interest in continuing the acquisition, according to a August 10 press release of the company.

Under the proposal, Northern Data shareholders would receive 2,319 class A rumble actions

If all the actions in circulation are exchanged, they would hold around 33.3% of the combined company. Rumble stressed that he had not made the final decision to launch the offer, which remains subject to reasonable diligence, negotiations and regulatory approvals.

Why Rumble acquires the data from the North?

Rumble, which initially started as a platform to support independent vloggers and small-scale content creators, has since expanded in the cloud infrastructure and digital asset services To diversify its activities and compete with more important technological rivals.

According to the company, the acquisition would transform it into a world leader in the AI cloud by integrating the GPU-AS-A-SERVICE platform of Northern Data, Taiga, and its unit of large-scale, ardent data center.

The Taiga material inventory includes around 20,480 GPU Nvidia H100 and 2,048 GPU H200.

Northern Data also has five data centers sites with a potential energy capacity of almost 850 MW, including an installation in Maysville, in Georgia, which could reach up to 180 MW once finished.

The terms proposed would be adjusted if certain changes in the balance sheet occur before the transaction closed. The chief of them is the planned sale of the Bitcoin mining of Northern Data, Peak Mining, who rumble made a condition of the acquisition.

Companies have declared that any product of this disinvestment would be used to reimburse part of a shareholder loan in progress.

The same day, he revealed the potential offer of Rumble, Northern Data confirmed He had signed a non-binding mandate sheet to sell advanced mines to Bitcoin Miner based in the United States Elektron Energy LP for a maximum of $ 235 million in cash.

The offer includes $ 175 million in advance, the rest of the performance objectives and the transfer of a material deposit contract.

The agreement, which is expected to conclude in the second half of 2025, would also give Northern Data’s ardent division the right to participate in potential high performance computer development on the Corpus Christi II site of Elektron.

This sale was in motion Since October of last yearWhen Northern Data revealed, he explored the divestment of advanced mines to focus on artificial intelligence solutions.

At the time, CEO Aroosh Thillainathan said that the objective was to position the data from the North as a supplier of Pure Game AI, while finding an appropriate steward for mining activity.

Support for attachment signals

Tether, which holds around 54% of the data in the North and invested $ 775 nationalon rumble Last year, would have supported its plans to acquire data from the North and plans to exchange all its participation of data from the North for rumble actions in the agreed ratio.

Tether would also become a major rumble client in the context of a commitment to purchase a multi -year GPU and would modify the terms of its loan to the North data, which would remain in progress after the agreement, the press release noted.