Rumble (RUM) shares jumped 21% in pre-market trading after declareing it agreed to purchase AI and high-performance-computing firm Northern Data AG (NB2), and stablecoin issuer Tether committed to purchaseing up to $150 million of GPU services from the combined company.
Investors in Frankfurt-based Northern Data will receive 2.0281 new Rumble shares for each NB2 share they own, and will conclude up with about 30% of the combined company. The deal values the company about $767 million, based on Rumble’s closing price on Friday.
Tether and other major Northern Data shareholders representing more than 70% of the stock committed to accepting the offer. Longboat Key, Florida-based Rumble stated it expected the all-share acquisition to be complete in the second quarter of next year.
The deal will give Rumble another 22,400 Nvidia GPUs and expand its cloud capacity to nearly 180 MW while strengthening its presence in Europe. Northern data shares soared 47% during Monday’s session, taking its market cap to about $1.3 billion.
Tether’s agreement to purchase services from Rumble after the deal is complete gives the world’s largest stablecoin issuer access to high-performance compute power for its decentralized AI infrastructure, reducing reliance on major cloud providers and supporting its broader push to build indepconcludeent AI systems. It builds on Tether’s earlier $775 million strategic investment in Rumble.
Tether also stated it would spconclude $100 million on a two-year advertising campaign to drive adoption of Rumble Wallet. The campaign will integrate Rumble Wallet with Tether’s USDT, XAUT and BTC products, expand monetization options for creators who prioritize free speech and accelerate Rumble’s advertising and ecosystem growth.
UPDATE (Nov. 10, 12:58 UTC): Adds calculated estimate of deal value in second paragraph.
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