Tether, the issuer of the USDt stablecoin, together with video platform Rumble, has proposed to acquire all outstanding shares of Northern Data, which specializes in high-performance computing and artificial intelligence.
Terms of the Deal
The offer, announced by Rumble on Monday, values Northern Data at approximately $1.17 billion. The exchange ratio is 2.319 newly issued Class A Rumble shares for each Northern Data share, implying a price of $18.27 per share based on Rumble's Friday closing price of $7.88.
Tether's Strategic Goals
Tether is already Northern Data's largest shareholder and is deepening ties with the company as part of a broader push into AI, peer-to-peer communications, and data storage. At the end of 2024, Tether invested $775 million in Rumble. In May, the two companies launched a USDT-enabled Bitcoin wallet.
Tether's Financial Performance
Recently, Tether reported a sharp jump in profits for the second quarter of 2025 amid a more settled regulatory environment in the U.S. The company recorded a net profit of $4.9 billion in the last quarter, a 277% increase from the same period a year ago. In the first half of the year, Tether generated $5.7 billion in profit, slightly ahead of $5.2 billion earned in the same stretch of 2024.
The joint bid by Tether and Rumble to acquire Northern Data marks a significant step in their strategy to strengthen their positions in the fields of artificial intelligence and high-performance computing.
