Rumble shares surged 23% on Monday, November 10, following the video platform's announcement of a transformative business combination with German AI infrastructure firm Northern Data AG, coupled with significant new commercial commitments from stablecoin issuer Tether that position the combined entity as a major player in decentralized cloud computing.
The all-stock transaction, valued at approximately $767 million, will add roughly 22,400 Nvidia GPUs and a globally distributed data center network to Rumble's cloud infrastructure.
Tether separately committed to purchasing up to $150 million in GPU services and deploying $100 million in advertising spend over two years, deepening its strategic partnership with the "Freedom-First technology platform."
Under the agreement announced Monday, Rumble will submit a voluntary public exchange offer to all Northern Data shareholders at a ratio of 2.0281 newly issued Class A Rumble shares for each Northern Data share - representing a 15% discount to Northern Data's last Frankfurt close and a reduction from the 2.319 ratio initially proposed when discussions began in August 2025.
If all shareholders participate, Northern Data investors will collectively own approximately 30.4% of the combined company. Tether, shareholders affiliated with Northern Data co-CEO Aroosh Thillainathan, and another significant investor - together representing about 72% of Northern Data shares - have committed to tendering their holdings at closing.
The acquisition provides Rumble with immediate access to one of Europe's largest GPU fleets, including 20,400 Nvidia H100s and 2,000 H200s, alongside four company-owned data centers and multiple co-located facilities across Europe and the United States. Northern Data's flagship Maysville, Georgia facility is expected to deliver up to 180 megawatts of capacity upon completion, substantially expanding Rumble's cloud computing capabilities.
The deal also includes a potential cash component of up to $200 million payable to Northern Data shareholders, contingent upon successful sale or commercialization milestones tied to Northern Data's former Corpus Christi, Texas location, which a global infrastructure asset manager is currently evaluating under exclusivity.
Tether's Expanding Role
Tether's involvement extends far beyond its existing 48% ownership stake in Rumble, which stems from a $775 million strategic investment made in February 2025. The stablecoin issuer, which holds a 54% stake in Northern Data, has positioned itself as both a major shareholder and key customer of the combined entity.
The newly announced $150 million GPU services commitment over two years gives Tether access to high-performance computing power essential for its decentralized AI infrastructure initiatives. This arrangement reduces Tether's reliance on major cloud providers while supporting its broader push to build independent AI systems aligned with its vision of decentralized finance and technology infrastructure.
"Following consummation of the potential transaction, Tether would become an important customer of Rumble, with a multi-year commitment to purchase GPUs," Rumble stated in its announcement, emphasizing the commercial synergy underlying the strategic alignment.
Advertising Partnership Accelerates Creator Monetization
Separately, Tether committed $100 million in advertising spend structured as $50 million annually over two years beginning in the first quarter of 2026. This advertising campaign aims to drive adoption of Rumble Wallet, the platform's cryptocurrency wallet solution developed in partnership with MoonPay.
The initiative will integrate Rumble Wallet with Tether's USDT stablecoin, XAUT gold-backed token, and Bitcoin products, expanding monetization options for content creators who prioritize free speech and platform independence. The advertising commitment represents a significant revenue opportunity for Rumble as it seeks to diversify beyond traditional video platform economics.
"Northern Data. Tether. Rumble. This is how we build the AI ecosystem for the future, from the ground up," stated Rumble Chairman and CEO Chris Pavlovski, who will retain voting control of the combined company despite Tether becoming the single largest Class A shareholder.
Strategic Rationale and Market Context
The transaction marks a transformative moment in Rumble's evolution from video platform to comprehensive cloud computing provider. Rumble already operates its own infrastructure to serve content creators and hosts Truth Social, former President Donald Trump's social media platform. The Northern Data acquisition accelerates its international expansion strategy while providing critical infrastructure for AI, video, and Web3 workloads.
The deal comes as cloud infrastructure and data centers attract intense market focus amid the artificial intelligence boom. Access to high-performance GPUs - particularly Nvidia's H100 and H200 chips - has become a critical competitive advantage, with major technology companies racing to secure compute capacity for AI training and inference.
Northern Data reported strong H1 2025 financial performance, with revenue increasing 72% to €94.3 million ($109.8 million) compared to the same period in 2024, driven by growth in its Taiga Cloud GPU-as-a-service business and data center operations.
For Tether, the expanded partnership advances its strategy of building decentralized infrastructure independent of Big Tech control. The world's largest stablecoin issuer has increasingly invested in alternative technology platforms, computing infrastructure, and Bitcoin mining operations as part of its vision for a more decentralized digital economy.
Financial Arrangements and Timeline
At closing, Rumble will acquire Northern Data's approximately €610 million shareholder loan from Tether. Half of that loan balance will convert into Rumble stock at $7.88 per share, with the remaining half refinanced as a new secured loan from Tether to Rumble. Tether has committed not to terminate the existing loan before closing, with accrued interest to be capitalized.
The offer has no minimum acceptance threshold, and Northern Data intends to terminate trading of its shares on the open market after closing. No separate delisting offer is required under German securities law, as Northern Data shares trade in the open market (Freiverkehr) rather than on a regulated exchange.
The transaction is expected to launch and close in the second quarter of 2026, subject to regulatory approvals from authorities in both the United States and Germany, along with other customary closing conditions. Guggenheim Securities and ParkView Partners are serving as financial advisors to Rumble, with Willkie Farr & Gallagher as legal counsel. Jefferies is advising Northern Data, while McDermott Will & Schulte represents Tether.
Final thoughts
Rumble's stock price opened more than 20% higher Monday morning before settling at a 23% gain, reflecting investor enthusiasm about the strategic pivot toward AI infrastructure while maintaining the platform's core video business. The company's Class A shares were added to the Russell 2000 and 3000 indices earlier this year, broadening institutional ownership.
Rumble and Tether CEOs Chris Pavlovski and Paolo Ardoino hosted a joint conference call Monday morning to discuss the transaction, which replaced Rumble's previously scheduled November 12 earnings call. The company released an updated investor presentation detailing integration plans and financial projections for the combined entity.
The acquisition positions Rumble to compete more effectively in the rapidly growing AI cloud services market while emphasizing data privacy and infrastructure independence - core themes in its "Freedom-First" positioning. With Tether as both a major shareholder and significant customer, the combined company gains financial stability and strategic alignment with one of cryptocurrency's most influential players.
As the artificial intelligence revolution drives unprecedented demand for computing power, Rumble's bet on owning and operating significant GPU infrastructure could prove prescient - provided it can successfully integrate Northern Data's operations and execute on its ambitious growth strategy across video, cloud, and Web3 services.