Rumble, a video platform similar to YouTube and recognized as a Bitcoin treasury firm, aims to acquire the German AI cloud business Northern Data for $1.17 billion in an all-stock deal. This strategic move is part of Rumble’s expansion to enhance its AI cloud capabilities. Northern Data’s AI division, which includes its cloud business Taiga and data center operations under Ardent, is at the center of this acquisition.
Interestingly, Northern Data has a controlling stake by Tether, a prominent stablecoin issuer, which supports Rumble in this acquisition effort. Alongside this transaction, Northern Data also announced it would sell its Bitcoin mining business, Peak Mining, to Elektron Energy for $235 million.
Following the potential acquisition, Tether is poised to become a significant customer of Rumble, committing to a multi-year agreement to purchase GPUs. Tether previously invested $775 million in Rumble, with an initial cash injection of $250 million.
Rumble, which is based in Canada and trades on Nasdaq under the ticker RUM, differentiates itself in the streaming market by promoting free speech. The platform has gained notable popularity among conservative creators and conspiracy theorists. Last year, Rumble began incorporating Bitcoin into its financial strategy, currently holding 210.8 BTC valued at over $25 million.
While RUM’s stock saw a 3% increase on the announcement day, it remains down approximately 34% since the beginning of the year.
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