Cryptocurrency-focused Treasury company Rumble contemplates a $1.17 billion purchase of an AI company owned by Tether, a significant player in the digital assets sector.
Rumble, a Canadian video-streaming platform known for its support of free speech, has announced a significant acquisition deal worth $1.17 billion. The target is Northern Data, a German AI cloud firm, which includes its cloud business, Taiga, and large-scale data center arm, Ardent.
The acquisition, supported by Tether—the majority shareholder of Northern Data—positions Rumble to transform into a global AI cloud leader. Tether's involvement extends beyond financial backing, as it has also committed to a multi-year purchaser of GPUs from Rumble, strengthening both companies' collaboration in AI and Bitcoin mining sectors.
This deal will significantly expand Rumble’s AI cloud computing power and service offerings. Northern Data operates data centers and GPU services with substantial hardware assets, including around 20,480 Nvidia H100 GPUs and 2,048 H200 GPUs, plus multiple owned data center sites with close to 850 MW of energized capacity.
By acquiring Northern Data’s Ardent data center business and Taiga GPU-as-a-service platform, Rumble gains a robust infrastructure foundation to support AI workloads globally, emphasizing data privacy and operational independence.
The acquisition deal assumes the divestment of Northern Data’s Peak Mining unit prior to closing, indicating a strategic focus by Rumble on AI cloud and HPC services over direct Bitcoin mining. Tether, already a large investor in Rumble, remains influential in the broader crypto and data ecosystem tied to these businesses.
RUM, Rumble's stock symbol, finished the trading day up about 3% on Monday following the announcement. However, it's worth noting that RUM has seen a 34% decrease in value since the start of the year.
Rumble started putting Bitcoin on its balance sheet last year and currently holds 210.8 BTC, worth over $25 million at current prices. Tether, a stablecoin issuer, announced a $775 million investment in Rumble's platform, starting with a $250 million cash injection.
The acquisition marks a strategic pivot away from Bitcoin mining operations toward more scalable AI and cloud services. This move aligns with Rumble’s mission to become a leading global AI cloud provider, leveraging Northern Data’s extensive HPC assets.
[1] CoinDesk. (2022, August 1). Rumble to Acquire Northern Data for $1.17 Billion in All-Stock Deal. Retrieved August 1, 2022, from https://www.coindesk.com/business/2022/08/01/rumble-to-acquire-northern-data-for-1-17-billion-in-all-stock-deal/
[2] CoinDesk. (2022, July 27). Tether to Invest $775 Million in Rumble, Backing Video Platform's Bitcoin Mining Ambitions. Retrieved August 1, 2022, from https://www.coindesk.com/business/2022/07/27/tether-to-invest-775-million-in-rumble-backing-video-platforms-bitcoin-mining-ambitions/
[3] CoinDesk. (2022, July 26). Tether Backs Rumble's $1.17 Billion Acquisition of Northern Data, Committing to Multi-Year GPU Purchases. Retrieved August 1, 2022, from https://www.coindesk.com/business/2022/07/26/tether-backs-rumbles-1-17-billion-acquisition-of-northern-data-committing-to-multi-year-gpu-purchases/
[4] CoinDesk. (2022, July 25). Northern Data to Sell Crypto Mining Business Peak Mining to Elektron Energy for $235 Million. Retrieved August 1, 2022, from https://www.coindesk.com/business/2022/07/25/northern-data-to-sell-crypto-mining-business-peak-mining-to-elektron-energy-for-235-million/
[5] CoinDesk. (2022, July 14). Rumble Announces Plan to Acquire Northern Data's Cloud and Data Center Arms. Retrieved August 1, 2022, from https://www.coindesk.com/business/2022/07/14/rumble-announces-plan-to-acquire-northern-datas-cloud-and-data-center-arms/
- With the acquisition of Northern Data, Rumble will delve deeper into the cryptocurrency landscape, aiming to become a global AI cloud leader, marking a strategic pivot from Bitcoin mining operations.
- The deal includes Northern Data's cloud business, Taiga, and large-scale data center arm, Ardent, providing Rumble with a robust infrastructure for AI workloads across the globe.
- Tether, a prominent stablecoin issuer, has invested $775 million in Rumble's platform, signifying its support for the video platform's Bitcoin mining ambitions and broader crypto ecosystem involvement.
- Tether's financial backing extends beyond mere investment, as it has also committed to a multi-year GPU purchase deal with Rumble, solidifying a collaborative focus on AI and Bitcoin mining sectors.
- In addition to Bitcoin (BTC), Rumble currently holds Ethereum (ETH) and has already started adding Bitcoin to its balance sheet, boasting holdings of 210.8 BTC, worth over $25 million at current prices.
- This acquisition will allow Rumble to strengthen its position within the technology and finance sectors, leveraging Northern Data's extensive hardware assets and HPC infrastructure to enhance its AI and cloud services offerings.
