Tether Takes €635M Claim on Rumble via Loan and Near-Free Warrants
Concentrated Counterparty
Company Background
RUM Group Inc. — trading on Nasdaq as RUM and previously known as Rumble Inc. — operates a video-sharing platform and cloud infrastructure business that reached $100.6 million in annual revenue for 2025, the first time in company history. The core video and advertising business generates roughly $25 million per quarter and has posted consistent net losses; Q1 2026 net loss was $30.3 million on $25.5 million in revenue.
In February 2025, Tether made a $775 million strategic investment in Rumble, buying shares and receiving a derivative that settled into equity. That deal made Tether simultaneously Rumble's largest outside shareholder and the underwriter of its Northern Data acquisition, which closed on June 17, 2026. Rumble acquired approximately 85.2% of Northern Data's outstanding shares through a stock-for-stock exchange offer, with the acquisition adding roughly 22,000 high-end NVIDIA GPUs and more than 200 MW of data center power capacity. Northern Data has raised its full-year 2026 revenue outlook to €170–190 million, up from a prior range of €130–150 million.
Under the name change effective June 18, 2026, the parent company is now RUM Group Inc., with Rumble (video platform) and Quake AI (the combined Northern Data and Rumble Cloud GPU infrastructure) as its two main businesses.
What Was Disclosed
On June 18, 2026 — the day after the Northern Data acquisition closed — a newly formed Irish subsidiary of Rumble called Rumble Freedom First Holding Limited entered into a €317,533,400.90 secured five-year term loan with Tether. The facility, which matures on June 18, 2031, bears interest at EURIBOR plus a 3% annual margin. The borrower group encompasses Irish HoldCo and its subsidiaries, which is to say the entire Northern Data business. The loan did not bring new cash into the company; it represents Tether transferring 50% of its pre-existing receivable under a November 2, 2023 floating-rate loan originally made to Northern Data onto Rumble's balance sheet.