Tether and Rumble have announced a joint proposal to acquire all outstanding shares of Northern Data, an artificial intelligence (AI) infrastructure operator, in a $1.17 billion deal. This acquisition would significantly alter the shareholder landscape, positioning Tether as Rumble's largest shareholder. The move is expected to leverage Northern Data's existing AI and high-performance computing (HPC) capabilities, further integrating them into Rumble's ecosystem. Tether, already Northern Data's largest shareholder, has been actively strengthening its ties with both Northern Data and Rumble. Earlier in 2024, Tether invested $775 million in Rumble, the anti-censorship video platform. This partnership has deepened with Rumble launching a Bitcoin and stablecoin wallet that supports USDT. Northern Data's operational structure includes Taiga Cloud (GPU cloud services), Ardent Data Center (data infrastructure), and Peak Mining. Notably, Northern Data plans to divest its Peak Mining division to concentrate its resources on AI and HPC development. Under the terms of the proposed deal, shareholders of Northern Data would receive 2.319 newly issued Class A Rumble shares for each Northern Data share they own, granting them approximately 33.3% of Rumble's total shares. Based on Rumble's prior Friday closing price of $7.88, this offer values Northern Data shares at approximately $18.27 each. The final deal valuation may be subject to adjustments based on the outcome of the Peak Mining unit sale. Upon completion of the acquisition, Tether is slated to become the single largest holder of Rumble's Class A common stock. To support the newly acquired business, Tether also intends to modify its existing loan agreement with Northern Data, which currently stands at 575 million euros (approximately $610 million).

Frequently Asked Questions: What is the total value of the proposed acquisition of Northern Data? The proposed acquisition of Northern Data by Tether and Rumble is valued at approximately $1.17 billion. What is Northern Data's primary business focus? Northern Data operates in the AI and high-performance computing (HPC) sectors, with divisions in GPU cloud services (Taiga Cloud), data infrastructure (Ardent Data Center), and Bitcoin mining (Peak Mining). How will Tether's ownership stake change as a result of this deal? Tether, already Northern Data's largest shareholder, is expected to become the single largest holder of Rumble's Class A common stock following the acquisition. What is the expected ownership structure of Rumble after the acquisition? Northern Data shareholders, upon completion of the deal, are expected to own approximately 33.3% of Rumble.

Crypto Market AI's Take

This strategic move by Tether and Rumble signals a significant expansion into AI infrastructure. By acquiring Northern Data, Tether not only solidifies its position as a major shareholder in Rumble but also gains direct access to AI and high-performance computing resources. This aligns with the broader trend of major players in the crypto and tech space investing heavily in AI capabilities. For our platform, this highlights the increasing intersection of AI and cryptocurrency, a key area we cover. Our focus on AI-driven insights and tools, such as those powering our AI trading bots, directly relates to this trend of leveraging AI for market analysis and operational efficiency in the digital asset space.

Tether and Rumble bet on AI with .17B Northern Data acquisition

Crypto Market AI's Take

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