Bitcoin News Today: Rumble to Buy Northern Data for $1.17 Billion in AI and Cloud Expansion

Rumble, a video-sharing platform and Bitcoin treasury company backed by Tether, has announced plans to acquire Northern Data, a German AI infrastructure and cloud services firm, in a deal valued at approximately $1.17 billion. The transaction, structured as an all-stock offer, would see Rumble take full control of the company, significantly expanding its artificial intelligence and high-performance computing (HPC) capabilities [1]. Northern Data, known for its data center operations and Bitcoin mining activities, has become a strategic target for Rumble as it looks to consolidate its position in the AI and cloud services markets [2].

According to the proposed terms, Rumble is offering 2,319 shares per Northern Data share, representing a 33.3% ownership stake under the current plan [3]. Tether, the stablecoin giant that holds a significant stake in Rumble, has reportedly supported the acquisition, signaling a coordinated effort to strengthen the company’s infrastructure and technological edge [4]. This move comes as part of a broader strategy to integrate AI-driven services with Bitcoin mining and cloud computing operations, leveraging the growing demand for advanced computing power in the cryptocurrency and tech sectors [5].

The deal, if finalized, would mark one of the largest acquisitions in the crypto space in 2025 and could set a new benchmark for how stablecoin-backed firms are expanding their technological footprints. Analysts have noted that the acquisition could accelerate the convergence of AI and blockchain infrastructure, particularly in the context of Tether's growing influence in both markets [6]. The fact that Northern Data is already involved in Bitcoin mining adds another layer of strategic value, as Rumble continues to bolster its Bitcoin treasury through various means, including strategic partnerships and direct investments [7].

In a separate transaction, Northern Data will sell its Bitcoin mining business, Peak Mining, to private miner Elektron Energy for $235 million [8]. This move aligns with Rumble's long-term vision of focusing its resources on AI and cloud services while Tether maintains its commitment to Bitcoin infrastructure through other channels. Tether is also expected to become a major customer of Rumble following the acquisition, with a multi-year commitment to purchase GPUs [9].

Rumble, which holds 210.8 BTC on its balance sheet, has positioned itself as a platform that prioritizes free speech and caters to a diverse range of creators, including those aligned with conservative viewpoints [10]. The company has been backed by Tether since last year, when the stablecoin issuer committed $775 million in funding, including an initial $250 million cash infusion [11]. Rumble’s stock (RUM) closed up about 3% on the day the acquisition was announced, though it remains down more than 34% year to date [12].

The acquisition highlights a broader trend in the cryptocurrency and tech industries, where firms are increasingly seeking to control the entire value chain—from computing infrastructure to financial services—within the digital economy. With Tether’s backing and the inclusion of Northern Data’s AI and data center assets, Rumble is well positioned to compete with major tech and crypto players in the rapidly evolving landscape of AI and blockchain integration [13].

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Source:

[1] Tether and Rumble Eye $1.17 Billion Northern Data Acquisition in Major AI Push

https://bravenewcoin.com/insights/tether-and-rumble-eye-1-17-billion-northern-data-acquisition-in-major-ai-push

[2] Tether-Backed Rumble Targets Billion-Dollar Takeover of German AI Firm Northern Data

https://coincentral.com/tether-backed-rumble-targets-billion-dollar-takeover-of-northern-data/

[3] Rumble to Acquire Northern Data in $1.17B Stock Deal

https://www.ainvest.com/news/bitcoin-news-today-rumble-acquire-northern-data-1-17b-stock-deal-expand-ai-cloud-infrastructure-2508/

[4] Rumble Eyes $1.17 Billion Takeover of Northern Data to Expand AI, Cloud Infrastructure

https://www.cryptopolitan.com/rumble-northern-data-acquisition/

[5] Tether and Rumble Bet on AI with $1.17B Northern Data Acquisition

https://cointelegraph.com/news/tether-and-rumble-bet-on-ai-with-full-northern-data-acquisition

[6] Truth Social Host Rumble Weighs Near $1.2 Billion Deal for German AI Cloud Group Northern Data

https://www.investing.com/news/stock-market-news/rumble-considers-near-12-billion-offer-for-german-ai-cloud-group-northern-data-4181768

[7] The Daily: Strategy Nears 3% of Bitcoin's Total Supply on Fifth Anniversary of First Buy, BitMines, ETH Stack Pushes Toward $5B, and More

https://www.theblock.co/amp/post/366410/the-daily-strategy-nears-3-of-bitcoins-total-supply-on-fifth-anniversary-of-first-buy-bitmines-eth-stack-pushes-toward-5b-and-more

[8] Northern Data to Sell Bitcoin Mining Unit for $235 Million

https://decrypt.co/334641/bitcoin-treasury-rumble-eyes-tether-owned-ai-firm-acquisition

[9] Tether-Backed Rumble Eyes $1.17B Northern Data Acquisition

https://www.theblock.co/post/366314/tether-rumble-northern-data-acquisition

[10] Rumble: The Platform Challenging YouTube

[11] Tether Invests $775M in Rumble

[12] Rumble’s Stock Performance

[13] Tether and Rumble Bet on AI with $1.17B Northern Data Acquisition