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Rumble has begun the equity exchange process with Northern Data as the video streaming platform prepares to merge with the troubled data center operator in a deal shaped largely by Tether’s ownership stakes in both companies.
Under the terms of the exchange, Northern Data shareholders will receive 2.0281 Rumble shares for each Northern Data share they hold. Northern Data currently trades at $13 per share, while Rumble trades at $6.41, a difference that does not immediately reconcile on a simple per-share basis. Tether’s majority control of Northern Data and its 30% stake in Rumble are central to how the transaction has proceeded. The merger was first announced in November and has been moving forward since.
The combination is unconventional: a video streaming company merging with a former crypto mining-linked data center business. Still, Rumble will gain data center sites and thousands of GPU servers as part of the transaction.
When the merger was announced, Rumble’s CEO discussed building an AI ecosystem, though the article notes that details have remained unclear.
Tether has committed to buying $150 million worth of computing power from Rumble over the next two years. The article describes this as a concrete revenue stream for Rumble, which has been burning through cash.
In addition, Tether extended a $610 million unsecured debt facility to Northern Data. As the merger advances, that debt arrangement is now being reassessed, though no further details have been disclosed.
Both companies’ shares fell after Tether became involved. Rumble has been trading near all-time lows, while Northern Data’s performance has also been weak.
However, once the merger process began, both stocks rallied by about 20% from their lows. The article characterizes the move as cautious optimism that the combined entity could work, even though the logic of the deal is not immediately clear to investors.
The article says the deal required little input from minority shareholders, largely because Tether’s control enabled the transaction to move forward with limited resistance. Northern Data’s financial difficulties in recent years reportedly left it with limited leverage to push back on terms.
It also notes that the market has been skeptical of Tether for years, citing questions about reserves, auditing practices, and involvement in crypto controversies. Tether has said it is transparent and safe, and has sought to strengthen its U.S. presence through lobbying and efforts to rebuild legitimacy after the FTX collapse.
For Northern Data, the article describes a messy financial restructuring. The company pivoted away from crypto mining after that model collapsed, but the transition to data centers has not been smooth. Aligning with Rumble is presented as a way to access new resources and potentially stabilize finances, while the reassessment of the $610 million debt facility could reduce pressure—though terms have not been revealed.
For Rumble, the infrastructure gains are described as tangible, including thousands of GPU servers and multiple data center sites. The AI strategy remains vague, with the article stating that Rumble has not clearly outlined what AI services it plans to offer or how Northern Data’s assets fit into that vision.
The article also frames the $150 million computing purchase commitment as the most concrete element of the arrangement, providing guaranteed revenue over two years that could support Rumble’s cash flow. It adds that it is unclear whether Tether needs that level of computing power or whether the commitment is also supporting its investment.
The merger is expected to close soon, assuming no regulatory surprises. The next phase will depend on whether Rumble can build a viable business using the Northern Data assets and translate the AI ecosystem concept into real revenue, particularly given that both companies’ shares were trading near lows before the merger-related rally.
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