Tether and Rumble Bid for Full Control of Northern Data

Tether, a prominent stablecoin issuer known for USDt (USDT), has joined forces with Rumble, an anti-censorship YouTube alternative, to propose a joint acquisition of all shares of Northern Data. This strategic move aims to significantly enhance Northern Data’s operations in artificial intelligence and high-performance computing (HPC). Tether already holds the largest shareholding in Northern Data, bolstering its support for this acquisition proposal. The companies have hinted at future collaborations focused on AI technology, peer-to-peer communication platforms, and data storage solutions.  Tether’s involvement plays a key role in facilitating this potential acquisition. They recently invested $775 million in Rumble, deepening their collaboration by introducing Bitcoin (BTC) and stablecoin wallet support for USDT through Rumble’s platform. Northern Data operates across three divisions: Taiga Cloud offering GPU cloud services; Ardent Data Center providing data infrastructure; and Peak Mining, a Bitcoin mining operation. Northern Data plans to sell its mining unit to focus on AI and HPC, with proceeds reinvested in these areas. Should the acquisition be successful, Northern Data shareholders would receive 2.319 newly issued Class A Rumble shares for each of their shares. This would translate into approximately 33.3% of Rumble’s ownership being transferred to Northern Data shareholders. The deal is valued at roughly $1.17 billion based on Friday’s closing price of Rumble at $7.88, representing a conversion of $18.27 per share for Northern Data shares. Pending the sale of their mining unit, Peak Mining, the offer will be finalized. Upon completion, Tether is anticipated to become the largest holder of Rumble’s Class A common stock. In addition, Tether plans to amend its existing loan to Northern Data, providing sufficient financial resources to support the acquired business. Earlier in 2023, Tether provided $610 million in debt financing for Northern Data. This move aligns with Tether’s broader strategy of strengthening ties with Northern Data and expanding its influence within the AI and HPC industries.