Northern Data’s Big Move: Rumble Acquisition Sparks Chaos!

by

Finance

What to know: 🤯

  • Canaccord Genuis (not the movie) just downgraded Northern Data to “hold” because they’re not sure if Rumble will make them rich or ruin them. 🤷‍♂️💸
  • Tether, the stablecoin titan, is both backer and future customer. Because nothing says “trust” like a crypto company funding your data centers. 💸🦄
  • The broker said the Rumble deal is likely to close by mid-2026. Because who needs results now when you can have a 2026 deadline? 🕰️🚀

Broker Canaccord Genuity said Northern Data’s (NB2) long-anticipated merger with video platform Rumble (RUM) took a major step forward yesterday after the companies signed a business combination agreement. Because nothing says “excitement” like a merger that’s been “long-anticipated” for years. 🎬💣

The broker downgraded Northern Data to hold from buy and lowered its price target to 15 euros ($17.3) from 27 euros, citing the merger’s implied exchange ratio. Price target dropped from 27 euros to 15… because 15 is the new 27? Or maybe they just lost their calculator. 🧮📉

Northern Data shares rose 9.8% in German trading to 17 euros. Because investors are optimistic, or maybe just desperate. 😂📈

The deal aims to scale Nasdaq-listed Rumble’s cloud and data center footprint, extend its international reach and sharpen its go-to-market strategy through government and enterprise ties. Because nothing says “global dominance” like a data center merger. 🌍💾

According to Canaccord analysts led by Kingsley Crane, the merger sets in motion three milestones: an exchange offer for Northern Data shares, Tether’s 150 million-euro GPU purchase agreement and a 100 million-euro ad commitment from Tether, issuer of the world’s largest stablecoin. Because nothing says “confidence” like buying GPUs and ads with a stablecoin. 🔥💻

As Northern Data’s majority shareholder, Tether will become an anchor customer for the combined company once the deal closes. Because nothing says “anchor” like a crypto company with a 150 million-euro GPU bill. ⛓️💸

While some investors may view the deal’s terms as underwhelming, the analysts said the outcome reflects Northern Data’s organizational volatility and the evolving AI infrastructure landscape. Because nothing says “volatility” like a merger that’s more chaotic than a Mel Brooks comedy. 😅🌀

Though its Taiga Cloud unit had recovered to monthly recurring revenue of EUR10 million-EUR15 million by late October, the durability of that growth beyond 2026 remains uncertain. Let’s just say it’s as uncertain as a Mel Brooks joke. 😅🧐

The deal is expected to close in the second quarter of 2026, with Tether’s backing providing strong momentum toward completion. Because nothing says “momentum” like a 2026 deadline. 🎉⏳

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2025-11-11 12:51