Rumble Inc. (NASDAQ:RUM) shares surged on Monday after the company reported second-quarter results and confirmed interest in an all-stock exchange offer to acquire Northern Data AG (OTC:NDTAF).

The company posted a net loss of $30.2 million, or 12 cents per share, missing analysts’ expectations for a loss of 7 cents. Revenue rose 12% year over year to $25.08 million, below the $26.78 million consensus. Adjusted EBITDA loss narrowed to $20.5 million from $28.7 million.

Monthly active users fell to 51 million from 59 million in the prior quarter, which management attributed to slower news and political commentary outside a U.S. election cycle. Average revenue per user increased 24% sequentially to 42 cents, driven by higher subscription and licensing revenue.

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Audience monetization revenue rose by $1.7 million, offset by a $3.7 million drop in advertising. Other initiatives’ revenue grew $0.9 million on higher cloud services and publisher network monetization.

The cost of services fell 26% to $26.5 million, mainly due to lower programming and content costs. General and administrative expenses rose 12% to $11.7 million, sales and marketing expenses increased 26% to $7.9 million, and research and development expenses declined 9% to $4.8 million.

Rumble ended the quarter with $306.4 million in liquidity, including $283.8 million in cash and cash equivalents and 210.82 Bitcoin (CRYPTO: BTC/USD) valued at $22.6 million.

CEO Chris Pavlovski said the company is entering “a new phase of aggressive growth” with Tether’s backing and highlighted the upcoming launch of Rumble Wallet and expanding cloud and AI initiatives.

Intent to Acquire AI Company Northern Data

The proposed Northern Data transaction would give its shareholders 2.319 newly issued Rumble Class A shares for each Northern Data share, resulting in about 33.3% pro forma ownership if all shares are tendered. The deal remains subject to due diligence, board approvals, definitive agreements, and regulatory clearances.

The transaction would integrate Northern Data’s Ardent data centers and Taiga GPU-as-a-service business, including over 20,000 Nvidia H100s, into Rumble’s operations. Tether would become Rumble’s largest Class A shareholder and commit to a multi-year GPU purchase agreement.

Price Action: RUM shares are trading higher by 9.29% to $8.612 at last check Monday.

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