Canceled $75 Million Tether Deal Sends Clear Signal as Rumble Absorbs Northern Data
19.06.2026 - 18:10:37 | boerse-global.de
The discounted GPU computing contract that would have guaranteed Tether up to $75 million in annual capacity from Northern Data has been abandoned. Rumble, which now controls 85.2 percent of the Frankfurt-listed company, said the decision reflects strong demand for the hardware. Northern Data is running close to capacity and management prefers to sell compute at prevailing market rates rather than lock in a discount arrangement.
Takeover Finalized, Warrants Unleashed
The voluntary exchange offer closed on June 17, 2026. Shareholders tendered roughly 8.2 million Northern Data shares, representing about 46.2 percent of the free float, and received 2.0281 Rumble Class A shares for each one tendered. To accommodate them, Rumble issued approximately 16.6 million new shares, with an additional 42.8 million shares going to the so-called TSA sellers who delivered their holdings just before closing.
Tether, the stablecoin issuer, emerged as a central force in the transaction. It received 36.7 million Class A shares upfront as part of the deal structure. On top of that, the company secured two pre-funded warrants. The first allows it to buy up to 51.5 million shares, the second up to 4.6 million shares. Tether paid roughly $36 million for the second warrant package, or $7.88 per underlying share. As a result, Rumble's authorized share count has swollen to 1.7 billion, and the dilution potential is immediate and substantial.
Should investors sell immediately? Or is it worth buying Northern Data?
AI Infrastructure in Focus
Operationally, the acquisition brings tangible assets. Northern Data owns about 22,000 Nvidia GPUs, including H100 and H200 systems, with utilization running at roughly 85 percent as of March 2026. The combined power capacity across ten data centers stands at around 250 megawatts, of which four centers are wholly owned by the group. A significant portion of the unmonetized capacity is slated to go online by 2027.
That hardware base supports a robust revenue outlook. Northern Data recently raised its 2026 sales forecast to between €170 million and €190 million, up from a prior range of €130 million to €150 million. The abandoned Tether contract, while offering guaranteed revenue, would have capped upside if market rates climb further.
Market Jitters and a Sharp Reversal
The stock has reacted with typical volatility. Shares last changed hands at €8.01, down 1.48 percent on Friday. Over the past week, the stock surged roughly 38 percent, yet year-to-date it has lost about 43 percent. Annualized volatility sits at an extraordinary 193 percent, underscoring the difficulty of valuing a company that has effectively ceased to be a standalone public entity.
For existing holders who participated in the exchange, the investment case now hinges on Rumble's ability to monetize energy contracts, GPU clusters, and data center capacity into predictable earnings. The next major checkpoints are second-quarter utilization numbers and whether the upgraded revenue guidance holds. The dilution from the massive warrant issuance adds a layer of uncertainty, but the decision to walk away from Tether's discount deal signals confidence in the free market for AI compute.
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Northern Data Stock: New Analysis - 19 June
Fresh Northern Data information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
