Tether and Rumble's Joint Acquisition Plan for AI Company Northern Data

AI infrastructure company Northern Data is reportedly set to be acquired jointly by Tether and Rumble. The complete takeover of the artificial intelligence business by these giants would help expand the existing high-performance computing and AI operations of Northern Data. Also, Rumble, which is known for its staunch opposition to censorship, received a whopping investment of $775 million from Tether towards the end of 2024. Furthermore, Rumble further strengthened the partnership in May when it unveiled its Bitcoin and stablecoin wallet, which ultimately supports USDT. Tether, the issuer and concoctor of the USDt stablecoin, already holds a majority share in Northern Data.

The Northern Data Acquisition

This proposed acquisition is not without strategic insight. Tether hints towards planned future collaborations around artificial intelligence, peer-to-peer communications, and data storage solutions. Each company involved in this potential acquisition is connected via Tether being the vital link. The acquisition process is designed in such a way that each Northern Data shareholder would receive 2.319 newly issued Class A Rumble shares for every Northern Data share they own. This implies around 33.3% of Rumble’s ownership will be ceded to Northern Data shareholders.

Financial Aspects of the Acquisition

The financial aspect of this acquisition offers a valuable advantage to the shareholders. As per the closing price of Rumble on Friday, the value of Northern Data’s shares stand at $18.27. This equivalates to a total of approximately $1.17 billion. With this landmark, the acquisition deal storms in the sale of the Bitcoin mining unit of Northern Data – Peak Mining. It is also mentioned that following the offer, Tether would emerge as the largest holder of Rumble’s Class A common stock.

Northern Data’s Business Focus

Northern Data focuses on three significant divisions – Taiga Cloud, which provides GPU cloud services; Ardent Data Center, which offers data infrastructure; and Peak Mining, a Bitcoin mining operation. Moreover, the company plans to sell its mining unit to focus more on AI and HPC, with proceeds from the sale being reinvested in these primary areas. As per the proposed agreement, Tether would adjust the current loan to Northern Data to ensure enough financial freedom for the newly acquired business. In late 2023, Tether had issued 57 million euros, equating to $610 million, in debt financing to Northern Data.

Conclusion

This proposed acquisition of Northern Data by Tether and Rumble is more than just a business takeover; it has the potential to shape the future operations of Northern Data. The deal will not only benefit the companies involved but may also offer new and exciting opportunities for the AI and blockchain industry. It remains to be concluded whether this acquisition will lead to the expected growth and development for all parties involved. For now, though, it is certain that this acquisition will have a significant impact on Northern Data’s direction, especially considering Tether’s move to adjust the current loan to the company. Also, it will be interesting to see how this acquisition affects the AI and blockchain landscape in the near future.

Tether and Rumble’s Joint Acquisition Plan for AI Company Northern Data

The Northern Data Acquisition

Financial Aspects of the Acquisition

Northern Data’s Business Focus

Conclusion

Latest posts by James Carter

Latest posts from the category News