On June 17, Rumble (RUM), whose primary business involves streaming video content, announced that it had closed its acquisition of Northern Data. The latter entity intends to have “approximately 250MW of power deployed or coming online across ten global data centers by 2027” and rents GPUs that are used to create AI. Northern Data expects to generate 130 million euros to 150 million euros of revenue in 2026.
Meanwhile, Tether, the issuer of the cryptocurrency Tether (USDT), has invested a large amount of funds in RUM and has pledged to provide it with a sizeable amount of revenue.
More News from Barchart
The difficulties that companies often face when entering entirely new, competitive, crowded sectors, along with the poor performance of cryptocurrencies this year and Rumble’s high valuation, make the outlook of RUM stock look uncertain at best at this point. Consequently, investors should consider selling the firm’s shares.
Rumble’s Acquisition of Northern Data May Not Work Out Well in the Long Term
The shares of companies that enter fairly crowded, “hot” fields in which they have little or no experience often rally in the short term and then plunge in the longer term. One example is Smartbird (BIRD), a former shoe retailer formerly known as Allbirds which announced in April that it would focus instead on leasing AI hardware. Initially, the company’s stock soared from $3 to $17 on the news, but on June 19, its shares closed at $5.97.
Another pertinent case is AMC (AMC). The movie-theater operator in March 2022 invested $27.9 million in Hycroft (HYMC), a gold and silver mining firm. Following the move, AMC stock jumped from $158 on March 14, 2022, to $233 on March 28, 2022. By May 16 of the same year, the shares had sunk to $120.30, and on June 18, they closed at just $2.83. AMC divested most of its stake in Hycroft in December 2025.
Not helping matters for Rumble is that it will have to take on some very well-heeled companies, along with a number of established start-ups with high revenue, in the data center and GPU rental space. Amazon (AMZN), Alphabet’s (GOOG) (GOOGL) Google, and Microsoft (MSFT), for example, all own data centers and provide data center capacity to other firms, while Google and Amazon both sell AI chips. Meanwhile, Coreweave (CRWV) and Nebius (NBIS) are two startups that rent GPUs and sell data center capacity. Coreweave generated revenue of $5.13 billion in 2025, while NBIS’ 2025 sales came in at nearly $530 million, indicating that both firms are far more well-established than Rumble’s Northern Data.
