Tether and Rumble Eye $1.17 Billion Northern Data Acquisition in Major AI Push

Video platform Rumble and stablecoin giant Tether are exploring a $1.17 billion deal to acquire German AI infrastructure company Northern Data. The all-stock transaction would transform Rumble from a YouTube alternative into a major cloud computing provider, backed by Tether’s massive financial resources.

The proposed deal comes as companies race to secure AI computing power amid growing demand for artificial intelligence services. Northern Data operates thousands of powerful GPUs needed for AI training and processing, making it an attractive target for tech companies looking to compete with Amazon Web Services and Microsoft Azure.

Deal Structure and Financial Terms

Under the proposal, Northern Data shareholders would receive 2.319 newly issued Rumble shares for each Northern Data share they own. This would give Northern Data investors roughly 33% ownership of the combined company, while Rumble’s existing shareholders would retain control.

The deal values Northern Data at about $18.27 per share, representing a 32% discount to the company’s recent Frankfurt stock price. Both companies indicated the final offer could be higher if negotiations proceed.

Rumble’s stock jumped 20% in pre-market trading after the announcement, reaching $9.48 per share.

The transaction remains preliminary. Rumble stressed it has not made a final decision and the deal requires board approval, due diligence, and regulatory clearance in both the United States and Germany.

Tether’s Strategic Role

Tether serves as the key link connecting all parties in this potential deal. The company behind the world’s largest stablecoin already owns 54% of Northern Data and invested $775 million in Rumble earlier this year.

Tether also provided Northern Data with €575 million in debt financing in late 2023. The proposed acquisition assumes proceeds from selling Northern Data’s Bitcoin mining division would help repay this loan.

Following the deal, Tether would become Rumble’s largest shareholder and has committed to a multi-year agreement to purchase GPUs from the combined company. This arrangement would provide steady revenue for Rumble’s expanded cloud business.

Northern Data’s Valuable Assets

Northern Data operates three main business segments that make it attractive to potential buyers. The company’s Taiga Cloud division manages over 20,480 H100 GPUs and more than 2,000 H200 chips from Nvidia – the most sought-after processors for AI applications.

The Ardent Data Centers division controls approximately 250 megawatts of power capacity across eight global data centers, with facilities in Sweden, Norway, the United States, and other locations. This infrastructure provides the foundation needed to run AI workloads at scale.

Northern Data also owns Peak Mining, a Bitcoin mining operation that the company plans to sell separately. The mining division signed a preliminary agreement with Elektron Energy for up to $235 million, including $175 million upfront.

Growing AI Infrastructure Market

The potential acquisition reflects the intense competition for AI computing resources. Companies need massive amounts of processing power to train and run artificial intelligence models, creating a lucrative market for cloud providers.

Northern Data reported 72% revenue growth in the first half of 2025, reaching €94.3 million. The company’s mining revenue alone increased 49% due to higher Bitcoin output and rising cryptocurrency prices.

Meanwhile, Rumble posted $25.1 million in quarterly revenue but recorded a $30.2 million net loss as it invests heavily in expanding beyond video sharing. The company already provides cloud services to customers including the Tampa Bay Buccaneers and the government of El Salvador.

Tether’s involvement brings significant financial backing to the deal. The stablecoin issuer reported record profits of $4.9 billion in the second quarter of 2025 and holds over $127 billion in U.S. Treasury securities.

Regulatory and Timeline Challenges

Several hurdles remain before any deal can close. The transaction requires approval from regulators in multiple countries where the companies operate. Northern Data trades on German exchanges while Rumble is listed on NASDAQ.

The companies expect the earliest possible closing date would be in the second half of 2025. This timeline assumes successful completion of due diligence, final negotiations, and all required approvals.

Northern Data’s board confirmed it is evaluating Rumble’s interest and remains open to discussions. The company previously received expressions of interest from other unnamed U.S.-listed companies for potential mergers or acquisitions.

The Peak Mining sale to Elektron Energy must also close before the main acquisition can proceed. This requirement ensures Northern Data can focus solely on AI and cloud computing while reducing its debt obligations.

What This Means for the Industry

The proposed deal represents a major bet on the future of decentralized AI infrastructure. Rumble and Tether are positioning themselves to compete with tech giants by combining content platforms, financial resources, and computing power under one umbrella.

The deal also highlights how cryptocurrency profits are flowing into traditional technology investments, as Tether deploys billions from its stablecoin operations into AI and cloud infrastructure projects.