Tether's GPU Services Commitment
Tether announced a $150 million GPU services commitment on Monday as Rumble acquired German AI infrastructure firm Northern Data. The stablecoin issuer will purchase computing resources over two years following deal completion.
Rumble's Acquisition of Northern Data
Rumble signed an agreement to acquire all outstanding Northern Data shares through a voluntary exchange offer. Each Northern Data share converts to 2.0281 newly issued Rumble Class A shares, valuing the transaction at approximately $767 million based on Friday's closing price.
A potential $200 million cash component may be paid to participating shareholders, bringing the total value to $967 million. The payment depends on Northern Data completing the sale of its former Corpus Christi HPC site under an existing agreement.
The merger adds 22,400 Nvidia H100 and H200 GPU units to Rumble's infrastructure, along with data center facilities including a 180MW-capacity site in Maysville, Georgia. Northern Data sold its Bitcoin mining subsidiary Peak Mining for up to $200 million before the deal.
Shareholder Commitments and Deal Structure
Shareholders representing 72% of Northern Data's equity, including Tether and affiliates of CEO Aroosh Thillainathan, committed to the exchange terms. The deal includes no minimum acceptance threshold, allowing completion regardless of participation levels.
Tether holds a controlling stake in Northern Data and completed a strategic investment in Rumble in February. Rumble will acquire Northern Data's 610 million-euro shareholder loan from Tether at closing, with half converting to shares at $7.88 and the remainder refinanced.
Advertising Agreement and Strategic Positioning
A separate $100 million advertising agreement spans $50 million annually for 2026 and 2027, targeting Rumble Wallet adoption and creator monetization. The GPU purchase positions Tether to develop AI models outside traditional cloud providers.
Rumble's Financials and Trading Information
Rumble reported third-quarter revenue of $24.8 million with $293.8 million in liquidity, including $269.8 million in cash and 210.82 Bitcoin. The Canadian video platform trades on Nasdaq under ticker RUM.
Transaction Timeline and Delisting
Northern Data shareholders would hold 30.4% of the combined entity if all shares are tendered. The transaction requires regulatory approvals and is expected to close in the first or second quarter of 2026, with Northern Data shares delisting thereafter.