Bitcoin News Today: Rumble Eyes All-Stock Takeover of Northern Data as Peak Mining Nears $235M Sale

Rumble Inc., a $2 billion video-sharing and cloud services provider, is considering a potential all-stock acquisition of Germany-based Northern Data AG, a company that operates data centers and is active in the Bitcoin mining sector [1]. Under the proposed deal, Northern Data shareholders would receive 2.319 newly issued Rumble Class A shares for each Northern Data share, which would give them approximately 33.3% of the combined entity if all outstanding shares are exchanged [1]. The share exchange ratio could be adjusted after balance-sheet modifications, including the planned sale of Northern Data’s Peak Mining unit [1].

Northern Data recently confirmed a non-binding term sheet to sell its Peak Mining division—its Bitcoin mining business—to Elektron Energy LP for up to $235 million in cash [1]. The transaction includes an upfront payment of $175 million, with the remaining amount contingent on performance metrics and the transfer of a deposit agreement with a mining hardware producer [1]. The deal is expected to close in the second half of 2025, subject to standard conditions [1]. Northern Data’s Ardent division will retain the right to collaborate on potential high-performance computing initiatives related to Corpus Christi II by Elektron [1].

Rumble’s proposed takeover assumes the Peak Mining sale will be finalized before the acquisition of Northern Data is completed. The proceeds from the sale will be used to partially repay a shareholder loan from Tether, which owns about 54% of Northern Data [1]. Tether has expressed support for the deal and indicated it would convert its Northern Data shares into Rumble shares at the agreed ratio [1]. It also plans to become a major Rumble customer under a multi-year GPU purchase commitment and amend the loan it has provided to Northern Data [1].

If the acquisition proceeds, it would bring Northern Data’s Ardent data-center operations and Taiga GPU-as-a-service platform into Rumble’s cloud business. The Taiga platform currently includes around 20,480 Nvidia H100 and 2,048 H200 graphics processing units [1]. Northern Data also owns five data center locations with combined potential energized capacity nearing 850 megawatts [1]. One of the facilities, in Maysville, Georgia, is projected to reach up to 180 MW [1].

Rumble emphasized that no final decision has been made to proceed with the acquisition, which remains subject to due diligence, definitive agreement negotiations, and regulatory approvals, including from Germany’s BaFin [1]. Tether, which invested $775 million in Rumble earlier this year, has indicated support for the proposed offer [1].

The potential acquisition and the Peak Mining sale reflect a broader trend of consolidation in the digital infrastructure and cryptocurrency sectors, as companies seek to enhance their competitive positions through strategic moves [1]. Rumble’s interest in Northern Data’s data centers and GPU infrastructure could position it as a more vertically integrated player in the industry [1]. The combination of hardware and mining assets may allow Rumble to exert greater control over the crypto mining value chain and potentially benefit from ongoing advancements in mining efficiency and regulatory clarity in key markets [1].

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[1] https://news.bitcoin.com/rumble-mulls-e1b-northern-data-takeover-as-peak-mining-set-for-235m-sale/