according to materials from the site - By COINTURK NEWS
On Monday, Rumble announced its intention to acquire Northern Data in a 'stock-for-stock' deal worth approximately $1.165 billion. The proposal involves issuing 2,319 new Class A shares of Rumble for each share of Northern Data. If the proposal is fully accepted, Northern Data shareholders will own about 33.3% of Rumble's shares. Tether, the issuer of the largest stablecoin USDT and majority shareholder of Northern Data with a 54% stake, expressed its support for the proposal. After the deal is completed, Tether will become the largest Class A shareholder of Rumble with a multi-year commitment to supply graphics processors. Following this news, Rumble's shares rose by 20% to $9.48 in pre-market trading.
Approval of the proposal is expected
Rumble stated that the combined company will prioritize leadership in AI cloud services, as well as global privacy and data independence. Chris Pavlovski, the chairman and CEO, confirmed his intention to retain a controlling stake in Rumble and positively supported the proposal. The company emphasized that the proposal is subject to the decision of Rumble's board of directors, final negotiations, and comprehensive review procedures.
Northern Data announced a revenue increase of 72%, reaching $109.8 million in the first half of 2025. This growth was driven by the activities of Taiga Cloud and Peak Mining, with mining revenue increasing by 49% to $62.3 million due to increased capacities and rising bitcoin prices.
The proposal includes the sale of Northern Data's bitcoin mining division, Peak Mining, prior to the completion of the deal. A non-binding agreement has been reached for its sale to Elektron Energy for up to $235 million. The proceeds are intended to reduce the current loan from Tether issued to Northern Data, while maintaining the balance on modified terms. Rumble is not responsible for this loan.
Even without accounting for mining assets, Rumble supports a corporate strategy of managing bitcoins, accumulating 210.8 BTC, which is currently valued at approximately $25.6 million. If the deal is completed, Rumble plans to integrate Northern Data's Ardent data centers and Taiga's graphics processor services, incorporating over 20,000 Nvidia graphics processors and deployed capacity of around 850 MW into its infrastructure. Additionally, strategic expansion of 180 MW is planned in Maysville, Georgia. The deal closure is scheduled for the second half of 2025 after receiving regulatory approvals and final decisions in the US and Germany.
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