Tether steps outside of crypto world: together with Rumble on the hunt for AI-market

Cryptogigant Tether and video platform Rumble together want to fully take over the German AI Infrastructure Company Northern Data. The two companies say that the deal brings them closer to their ambitions to play a greater role in artificial intelligence and high-performance computing. Analysts wonder whether this step will increase Tether’s influence in the tech world.

Strategic cooperation around AI and Crypto

The proposed takeover has a value of approximately 1.17 billion dollars. According to a statement from Rumble, Northern data shareholders receive 2,319 newly issued class a rumble shares for each share. Based on the closing price of Rumble of $ 7.88, this amounts to a price of $ 18.27 per Northern Data share.

Tether, publisher of Stablecoin USDT, is already the largest shareholder of Northern Data. With the deal, Tether would also be the biggest holder of Rumble’s Class A shares. Rumble is a video platform that positions itself as an alternative to YouTube, with a strong focus on freedom of expression.

Northern Data is active in three branches: Taiga Cloud, which supplies GPU-Cloudservices, Ardent Data Center for data frastructure and Peak Mining, a Bitcoin (BTC) Mining Operation. The company wants to sell Peak Mining and reinvest the proceeds in AI and HPC. The takeover price can still be adjusted depending on that sale.

Acquisition depending on shareholders’ approval

Tether already invested $ 775 million in Rumble at the end of 2024 and in May both companies announced a bitcoin and stablecoin wallet that supports USDT. The possible takeover must further strengthen this collaboration.

In 2023, Tether also provided a loan of 575 million euros (around $ 610 million) to Northern Data. That loan is being adjusted to give the company more financial scope after the takeover.

The deal is not yet complete and must meet various conditions, including approval of shareholders. With the possible acquisition, Tether would take a new position outside of his traditional role in the crypto industry, with the focus shifting to a combination of crypto and AI.