Rumble Technology secures 85% shareholder approval to close its acquisition of Northern Data, a major European datacenter operator, consolidating substantial AI/GPU hosting capacity.
Rumble, Inc. (RUM) stock extended its overnight rally as the company announced significant progress toward completing its previously announced acquisition of Northern Data AG, having secured 85.2% of the latter's outstanding share capital through an exchange offer. The deal marks a strategic shift for Rumble from a video platform toward a company focused on AI and high-performance computing infrastructure.
On Monday, Rumble disclosed that Northern Data shareholders tendered over 8.1 million shares through the exchange process, bringing total secured ownership to approximately 85.2% of Northern Data shares. These tenders represented roughly 46% of the shares that were not already committed under existing support agreements. The final acceptance period for the share exchange proposal ended on June 1, after which investors could no longer tender shares.
The acquisition is expected to close in mid-June. Upon completion, Rumble will assume ownership of Northern Data's high-performance computing assets and its data center network spanning Europe and the U.S. The deal will significantly expand Rumble's cloud computing business by adding approximately 22,400 Nvidia AI chips, including advanced H100 and H200 GPUs, as well as access to nine data centers.
Complementing the Northern Data acquisition, Rumble has secured a deal with Tether, which plans to purchase up to $150 million in GPU computing services over two years following the acquisition's close. Additionally, Tether has committed to $100 million in advertising over a two-year period, beginning in the first fiscal quarter of this year.
Last week, Rumble announced a multi-year commercial agreement with Together AI to deploy Nvidia's HGX B300 Blackwell systems, representing one of the latest generations of AI-focused hardware. The partnership positions Rumble to serve enterprise customers seeking large-scale computing power.
Rumble also provides video streaming and cloud services for Truth Social, the social media platform owned by Trump Media & Technology Group (NASDAQ: DJT) and associated with President Donald Trump.
On Stocktwits, retail sentiment surrounding the stock remained decidedly bullish, with message volume surging 1,146% over 24 hours. RUM stock has gained over 24% year-to-date and edged 0.4% higher in overnight trading.