Rumble Inc. has experienced a significant increase in its stock value following the company’s release of its second-quarter results and its announcement of an interest in acquiring Northern Data AG in an all-stock exchange offer. Despite posting a loss of $30.2 million (12 cents per share), which was worse than analysts’ expectations, Rumble’s revenue showed a 12% increase year-over-year, totaling $25.08 million.

The company indicated a decline in monthly active users, dropping to 51 million from 59 million, largely due to a decrease in political content engagement outside of an election cycle. Nevertheless, there was a notable increase in average revenue per user by 24%, reaching 42 cents, driven by higher earnings from subscriptions and licensing.

Revenue from audience monetization rose by $1.7 million, compensating for a $3.7 million decrease in advertising revenue. Rumble attributed a 26% decline in service costs to reduced programming expenses, although general administrative costs rose by 12%, and marketing expenses increased by 26%. Rumble concluded the quarter with significant liquidity, amounting to $306.4 million.

As for the potential acquisition of Northern Data, the proposed transaction plans to offer Northern Data shareholders 2.319 shares of Rumble Class A for each Northern Data share. This move could lead to Northern Data shareholders holding around 33.3% of the combined entity if all shares are exchanged. The acquisition aims to integrate Northern Data’s data centers and GPU services into Rumble’s operations.

Rumble’s CEO, Chris Pavlovski, emphasized their entry into a "new phase of aggressive growth" with Tether backing and highlighted the upcoming launch of Rumble Wallet.

Currently, Rumble’s shares have seen a boost of 9.29%, trading at $8.612.