The live streaming platform and Bitcoin Hodler Rumble are moving to expand the footprint of artificial intelligence and high-performance computing.
On August 10, the video sharing and cloud services company disclosed its plans to acquire Northern Data, an AI and HPC infrastructure provider.
The acquisition includes a stock exchange offer, according to the statement. There, Rumble will issue newly issued Class A shares in exchange for Northern Data’s shares.
Under the proposed terms, each Northern data shareholder will receive 2.319 rumble shares for all shares it holds.
If approved, the transaction would grant Northern Data Sharpolder approximately 33.3% ownership of Rumble. The final share exchange rate will be determined after due diligence and negotiations between the two companies.
Why Rumble wants to get data from the North?
Rumble said the acquisition will strengthen its global AI cloud leader position.
To achieve this goal, the company will independently fold Northern Data’s core operations into its own operations, including Ardent, Data Center Business and Taiga.
Taiga operates a large fleet of Nvidia hardware, including over 20,000 H100 and H200 GPUs.
Northern Data also owns five data centers that combine energyized capacity of nearly 850 MW. This includes the Maysville, Georgia site and is projected to offer up to 180 MW if fully operational.
In its second quarter results, Rumble CEO Chris Pavlovski noted that it is expanding its cloud and AI initiatives to support the sustainable growth of the free and open internet.
He added:
“Rumble is entering a new phase of aggressive growth. We have always been ambitious, but today we are in a different position. We are not only pursuing bold initiatives, but we are outperforming the major tech peers.”
The role of tethers in trading
Tether, the publisher of USDT Stablecoin, plays a key role in this potential acquisition.
Over the past year, the company has invested heavily in Rumble and Northern data as part of its diversification strategy.
Tether currently holds 54% of its shares in Northern Data. We intend to sell the entire shares in exchange for newly issued Class A shares in exchange for the same exchange ratio provided to other shareholders of the AI company.
After the transaction, Tether is expected to become the largest shareholder of Rumble’s Class A common stock. Pavlovski maintains the majority vote.
Additionally, Tether plans to enter into a multi-year GPU purchase agreement with Rumble and adjust the existing loan to North Data, giving it a combined financial flexibility that enhances its business.
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