Tether and Rumble propose a joint acquisition of all shares of Northern Data, gaining full control of the artificial intelligence infrastructure company.
According to an announcement from Rumble on Monday, the deal will build on Northern Data's existing AI and high-performance computing (HPC) business. Tether, the issuer of the Tether (USDT) stablecoin and already the largest shareholder of Northern Data, will support the transaction. Tether has hinted at future collaborations in AI, peer-to-peer communication, and data storage solutions.
Tether is the core connecting all companies involved in this potential deal, having invested $775 million in the anti-censorship YouTube alternative platform Rumble by the end of 2024. The two companies deepened their collaboration in May when Rumble announced the launch of a Bitcoin (BTC) and stablecoin wallet supporting USDT.
Northern Data's business is divided into three sectors: Taiga Cloud, which provides GPU cloud services; Ardent Data Center, which offers data infrastructure; and Peak Mining, which focuses on Bitcoin mining. The company has stated its intention to sell the mining division to concentrate on AI and HPC. Proceeds from the sale will be reinvested in these areas.
If the transaction is completed, each Northern Data shareholder is expected to receive 2.319 newly issued Class A shares of Rumble for each share of Northern Data they hold. This will result in approximately 33.3% of Rumble ownership being transferred to Northern Data shareholders.
Based on Rumble's closing price of $7.88 on Friday, this offer values Northern Data shares at $18.27, with a total value of about $1.17 billion.
The deal may also be adjusted due to the potential sale of the Bitcoin mining division, Peak Mining. The announcement stated, "After the potential acquisition is completed, Tether is expected to become the largest single holder of Rumble Class A common stock."
Tether will also modify its existing loans to Northern Data to provide "ample financial space" for the acquired business. Tether provided €575 million ($610 million) in debt financing to the company by the end of 2023.
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Original: “Tether and Rumble Bet on AI with $1.17 Billion Acquisition of Northern Data”
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