Rumble is exploring a billion-euro all-stock acquisition of Germany’s Northern Data AG, in a deal that could reshape the video-sharing platform into a major player in global AI cloud services.
Key Takeaways
- 1Northern Data shareholders could receive 2.319 Class A Rumble shares for each share tendered.
- 2Peak Mining unit set for sale to Elektron Energy for up to $235 million.
- 3Tether, Northern Data’s majority shareholder, backs the deal and will exchange its stake for Rumble shares.
- 4Acquisition would integrate Northern Data’s Ardent data centers and Taiga GPU platform into Rumble’s cloud business.
What Happened?
Rumble, valued at about $2 billion, has confirmed it is in talks to acquire Northern Data in an all-stock transaction. The offer values Northern Data at roughly €1 billion and would give its shareholders a 33.3% stake in the combined company, provided all outstanding shares are exchanged. The deal remains subject to due diligence, regulatory clearance, and formal agreements.
Click below to read today’s Rumble announcement:https://t.co/0YKz0HQQGU
,Rumble 🏴☠️ (@rumblevideo) August 11, 2025
Deal Structure and Conditions
Under the proposed terms, each Northern Data shareholder would receive 2.319 newly issued Rumble Class A shares for each share tendered. The share exchange ratio could be adjusted based on changes to Northern Data’s balance sheet before closing. A key condition is the sale of Northern Data’s Peak Mining division prior to the acquisition’s completion.
On the same day Rumble announced its interest, Northern Data confirmed it had signed a non-binding agreement to sell Peak Mining to Elektron Energy LP, a U.S.-based Bitcoin miner, for up to $235 million in cash. The deal includes $175 million upfront and additional payments tied to performance targets and the transfer of a hardware deposit agreement. Closing is expected in the second half of 2025. Northern Data’s Ardent division will retain rights to participate in potential high-performance computing development at Elektron’s Corpus Christi II site.
Strategic Rationale
Rumble began as a platform for independent video creators but has been expanding into cloud infrastructure and digital asset services. The acquisition would give Rumble control of Northern Data’s Ardent data center operations and its Taiga GPU-as-a-service platform, which includes 20,480 Nvidia H100 GPUs and 2,048 Nvidia H200 GPUs.
Northern Data’s five data centers have a combined potential capacity of nearly 850 megawatts, including a new facility in Maysville, Georgia, that could reach 180 MW once operational.
Rumble said the deal would position it as a global AI cloud leader, leveraging Northern Data’s hardware and high-performance computing capabilities to compete with larger technology companies.
Tether’s Role and Support
Tether, which owns about 54% of Northern Data and invested $775 million in Rumble earlier this year, has pledged support for the transaction. It plans to swap its Northern Data stake for Rumble shares at the agreed ratio and become a major Rumble customer under a multi-year GPU purchase commitment.
Rumble’s Chairman and CEO Chris Pavlovski, who holds majority voting power in the company, has also agreed to vote all his shares in favor of the deal. The acquisition would also amend the terms of Northern Data’s shareholder loan from Tether, leaving any remaining balance outstanding but avoiding liability for Rumble.
CoinLaw’s Takeaway
Honestly, this is Rumble swinging for the fences. They are moving beyond being just a YouTube alternative and going straight into AI cloud and high-performance computing. Northern Data’s GPU power and massive data center capacity could give Rumble serious competitive muscle in the AI arms race. The fact that Tether is both backing the deal and pledging to be a long-term customer makes this look like a well-orchestrated strategic move. If it goes through, Rumble could go from niche platform to a significant player in AI infrastructure almost overnight.
