Stablecoin giant Tether and media platform Rumble have come together to flex their purchasing power and acquire Northern Data, a leading provider of AI and HPC infrastructure. This $1.17 billion deal signifies that both companies are changing their core business strategies while also demonstrating the path major players are taking in the crypto and tech sectors.
Deal Details
Northern Data is moving away from Bitcoin mining by selling its Peak Mining division. Instead, the company plans to focus more on AI and GPU cloud services. Under the terms of the agreement, the shareholders of Northern Data will receive 2.319 shares of Rumble for each share they own, valuing Northern Data at $1.17 billion. When the transaction is completed, Tether will become the largest owner of Rumble Class A shares through the equity acquisition, solidifying its ownership stake in the fast-growing technology and media sector.
Why This Deal Matters
The industries of AI and HPC are growing quickly and now rival blockchain’s expansion speed. By acquiring Northern Data, Tether and Rumble gain the resources and infrastructure needed to scale their operations in these fields. For Tether, this move goes beyond its reputation in stablecoins and into broader technology and media investments. At the same time, Rumble strengthens its technical base, allowing it to expand beyond being just a video platform.
Background and Context
Tether has also gradually increased its investments in the tech space. In 2024, it invested $775 million into Rumble. Earlier, in 2023, Tether extended debt financing to Northern Data for €575 million ($610 million in USD). In May of this year, Rumble integrated a USDT wallet that supports both Bitcoin and stablecoins, indicating growing collaboration between the companies.
This acquisition suggests that Tether and Rumble are betting on AI infrastructure to become as profitable and influential as the crypto market. The partnership could create a new technology hub combining media, finance, and computing power. However, it remains to be seen if this will lead to lasting growth or just another high-profile merger with little returns.
What This Means for the Future
Tether will rely on the media and technology sectors through aggressive expansion and beyond stablecoins by ramping up its technical skills. Rumble will be able to expand into new niches and diversify beyond the media industry. These businesses are situated at the intersection of cloud, AI, and blockchain.
Similarly, Northern Data’s decision to focus on offering GPU cloud services rather than Bitcoin mining could signal a new trend among blockchain companies to diversify their business models.
Suppose Northern Data’s focus is on HPC infrastructure. In that case, it has the potential to create new, lucrative revenue streams and meet the demand for more efficient and faster computing solutions worldwide.
Conclusion
This $1.17 billion deal between Tether and Rumble shows how major crypto and tech players are evolving.
Northern Data is leveraging modern technology that has the potential to revolutionize digital media and finance in the future. The success of this teamwork will depend on Northern Data’s capacity to develop and scale these infrastructure initiatives. For the time being, the transaction is a daring step into a larger tech sector where high-performance computing, blockchain, and artificial intelligence meet.
