Tether and Rumble Propose $1.17B Northern Data Acquisition
Tether and Rumble have jointly proposed a $1.17 billion Northern Data acquisition to consolidate control of the AI and high-performance computing provider. Under the deal, each Northern Data share would convert into 2.319 new Class A Rumble shares, valuing Northern Data at $18.27 per share. After closing, Northern Data investors would own 33.3% of Rumble, while Tether becomes the largest Class A shareholder.
The proposal includes refinancing Tether’s existing €575 million debt in Northern Data and builds on its earlier $775 million investment in Rumble. Northern Data plans to divest its Peak Mining bitcoin unit and reinvest in Taiga Cloud GPU services and Ardent Data Center AI/HPC infrastructure.
This Northern Data acquisition aims to boost AI infrastructure and HPC capabilities, reduce bitcoin mining exposure, and secure long-term financial stability.
Neutral
This acquisition reflects Tether and Rumble’s strategic pivot from bitcoin mining toward AI and high-performance computing. The debt refinancing and prior investments solidify financial backing. For traders, there is no immediate catalyst to drive BTC or USDT prices, as the divestment of Peak Mining reduces mining exposure but does not alter supply dynamics. In the short term, market reaction is muted. In the long term, enhanced AI infrastructure could boost demand for HPC services and data center tokens, but these sectors remain separate from main crypto spot markets. Therefore, the overall impact on BTC and USDT prices is neutral.