Big Tech Company Rumble Exploring Potential Billions in Bids for German Firm Northern Data
Northern Data Merges with Rumble in Potential Nasdaq Deal
Northern Data, a German tech company with significant ties to Tether, is set to merge with US video service Rumble in a potential deal that would see the company listed on the Nasdaq. This move marks a departure from Northern Data's initial plans to list its AI and data center division on the US Nasdaq exchange independently.
The proposed transaction, which is currently under evaluation by Northern Data's management and supervisory boards, would see Northern Data shareholders receive approximately 2.319 Rumble Class A shares for each Northern Data share tendered. This would result in Northern Data shareholders owning about a third of Rumble post-transaction. Rumble Inc. proposed this acquisition via an exchange offer in August 2025.
Rumble's plan includes the sale of Northern Data's crypto mining division as a condition for the takeover. Meanwhile, the sale of Northern Data's Peak Mining division to Bitcoin miner Elektron Energy for $175-$235 million is already a done deal.
The merger would value Northern Data at $1.17 billion, a figure lower than its market value, causing a 20% drop in its stock price to around €18 at the Frankfurt Stock Exchange. This drop is partly due to the sale price being lower than Northern Data's potential valuation of $10-$16 billion, as reported by Bloomberg last fall.
Northern Data's strength lies in its access to Nvidia high-performance chips, used for both cryptocurrency mining and AI applications. The company claims to have around 20,480 H100 chips and over 2,000 H200 chips. However, the current number of these chips has not been updated since the initial report.
The merger would effectively merge Northern Data into Rumble rather than pursuing an independent Nasdaq listing for its AI and data center units alone. Tether, a major shareholder of Northern Data, supports the potential transaction and would become the largest Rumble shareholder after completion.
In the first half of 2025, Northern Data increased its revenue by 72% to €94 million, but the company also quintupled its loss to €164 million during the same period. Despite this, Northern Data is currently focusing on its cloud business ("Taiga") and data center division ("Ardent"), which owns five data centers.
It's important to note that this article does not contain any new information about the current status of the sale of Northern Data to Rumble or its crypto mining division to Elektron Energy. Both parties expect a final offer to be higher, as stated in the announcement.
Northern Data initially gained recognition for its Bitcoin mining operations in Europe. Since the beginning of the year, its stock has fallen by nearly two-thirds from its peak of €54. Tether, a major shareholder of Northern Data, loaned the company $610 million for business expansion nearly two years ago and holds 54% of its shares. Tether also invested $775 million in Rumble in February, holding 48% of its shares.
As the deal progresses, more details about the merger and its implications for both Northern Data and Rumble will likely become available. Stay tuned for updates.
- The merger between Northern Data and Rumble, if successful, would not only see Northern Data listed on the Nasdaq but also bring changes to the financial structure of both companies, as Northern Data shareholders would own about a third of Rumble post-transaction.
- The merger between Northern Data and Rumble could potentially impact the technology sector, as the combined entity would benefit from Northern Data's access to high-performance Nvidia chips, which are used for both cryptocurrency mining and AI applications.
