Video platform Rumble invests $1.17 billion in the acquisition of Northern Data! Tether becomes a key driver, aiming at the global AI Cloud Mining market.

YouTube competitor and video platform Rumble, which holds Bitcoin assets, announced plans to acquire the cloud business Taiga and data center division Ardent of the German company Northern Data for $1.17 billion in an all-stock transaction, significantly enhancing its global AI cloud computing capabilities. Stablecoin issuer Tether, as the major shareholder of Northern Data, supports this deal and has committed to becoming a long-term customer of Rumble, signing a multi-year GPU procurement agreement. Northern Data is also selling its crypto Mining business Peak Mining for $235 million. Rumble is known for advocating free speech and holds 210.8 BTC (worth over $25 million), with its stock price rising 3% on Monday.

[Rumble invests $1.17 billion in AI cloud computing] The video platform Rumble, which challenges YouTube (NASDAQ: RUM), has announced plans to acquire the cloud business (Taiga) and the large-scale data center business unit (Ardent) of the German company Northern Data through an all-stock transaction valued at $1.17 billion. This move aims to significantly enhance its competitiveness in the global artificial intelligence (AI) cloud computing space, marking an important strategic expansion of the video platform into the AI infrastructure sector.

[Northern Data divests mining business, Tether's dual role is key] The acquired party Northern Data (whose majority shareholder is stablecoin issuer Tether) announced on the same day that it has reached a separate deal to sell its encryption Mining business Peak Mining for $235 million to private Bitcoin mining company Elektron Energy. This marks that Northern Data is undergoing a business restructuring, focusing on data centers and cloud computing.

The streaming platform Rumble confirmed in a statement that Tether supports its acquisition plan for Northern Data assets. Rumble further disclosed in the announcement: "After the potential deal is completed, Tether will become an important customer for Rumble and has committed to signing a multi-year procurement protocol for graphic processing units (GPUs)." This collaboration highlights Tether's central role in promoting transactions and future business synergies.

It is worth noting that the stablecoin issuer Tether announced last year that it would invest $775 million in the Rumble platform, with an initial injection of $250 million in cash.

【Rumble Background: Free Speech Platform and Bitcoin Holdings】

• Background of Tether: This company, headquartered in El Salvador, is responsible for minting USDT (the fourth largest cryptocurrency by market capitalization). USDT is a stablecoin pegged to the US dollar and backed by US dollars, and is considered a key component of the cryptocurrency ecosystem.
• Rumble Background: Rumble is a Canadian company that allows users to stream and publish videos, and is one of the main competitors to YouTube. The platform differentiates itself by supporting free speech, making it popular among conservative creators and certain communities in the United States.
• Bitcoin Holdings: Rumble began incorporating Bitcoin into its balance sheet last year. As of now, it publicly holds 210.8 BTC, valued at over 25 million dollars based on current prices, showcasing its strategy for allocating cryptocurrency assets.

[Market Reaction: Stock Price Slightly Rebounds] In the capital market, Rumble stock (RUM) rose about 3% on Monday trading day after the news was announced. However, the stock's cumulative decline since the beginning of the year still reaches about 34%, reflecting that the market still needs time to verify its transformation strategy.

Conclusion: Rumble's $1.17 billion acquisition of Northern Data's core assets is a key step in its strategic transformation from a video platform to an AI and cloud computing infrastructure provider. Tether, as the major shareholder of Northern Data and an important investor/future customer of Rumble, is the core driving force behind the deal, and its promised long-term GPU procurement agreement also provides certainty for Rumble's new business. At the same time, Northern Data's divestiture of its mining business (Peak Mining) shows that industry resources are migrating from traditional PoW mining to the AI computing power field. Rumble's Bitcoin holdings reflect its continued confidence in encryption assets. Although the stock price has been under pressure this year, whether this significant acquisition can successfully integrate and enhance Rumble's position in the fiercely competitive AI cloud market will be key to its future valuation recovery. Investors need to closely monitor the progress of the transaction, the implementation of Tether's cooperation, and the effectiveness of Rumble's transformation into a technology infrastructure service provider.