Tether and Rumble Propose Acquisition of Northern Data Shares

According to Cointelegraph, Tether and Rumble have put forward a proposal to jointly acquire all shares of Northern Data, aiming to take full control of the artificial intelligence infrastructure company. This strategic move is intended to enhance Northern Data’s existing operations in AI and high-performance computing (HPC). Tether, known for issuing the USDt (USDT) stablecoin and already the largest shareholder in Northern Data, is backing the transaction. The company has hinted at future collaborations that could involve AI, peer-to-peer communications, and data storage solutions. Tether plays a central role in connecting the companies involved in this potential acquisition. The firm invested $775 million in Rumble, an anti-censorship YouTube alternative, at the end of 2024. Their collaboration deepened in May when Rumble introduced a Bitcoin (BTC) and stablecoin wallet supporting USDT. Northern Data operates through three divisions: Taiga Cloud, offering GPU cloud services; Ardent Data Center, providing data infrastructure; and Peak Mining, a Bitcoin mining operation. The company plans to sell its mining unit to concentrate on AI and HPC, with proceeds reinvested into these areas. Should the acquisition proceed, Northern Data shareholders who tender their shares are expected to receive 2.319 newly issued Class A Rumble shares for each Northern Data share. This exchange would result in approximately 33.3% of Rumble's ownership being transferred to Northern Data shareholders. Based on Rumble’s closing price of $7.88 on Friday, the offer values Northern Data shares at $18.27, totaling roughly $1.17 billion. The deal is subject to adjustments related to the potential sale of the Bitcoin mining unit, Peak Mining. Upon completion of the offer, Tether is anticipated to become the largest holder of Rumble’s Class A common stock. Additionally, Tether plans to amend the existing loan to Northern Data to ensure sufficient financial resources for the acquired business. In late 2023, Tether provided 575 million euros ($610 million) in debt financing to Northern Data. This financial maneuver is part of Tether's broader strategy to strengthen its ties with Northern Data and expand its influence in the AI and HPC sectors.