RUM Group Inc. (NASDAQ:RUM) stock jumped in Monday’s premarket session. The move followed a report identifying Anthropic as the customer behind RUM Group’s $13.7 billion GPU services contract.
The Information reported Sunday that Anthropic signed the six-year compute agreement with the Trump-linked company.
RUM Group had previously disclosed the contract in an August regulatory filing. However, it identified the customer only as an unaffiliated U.S.-based third-party cloud customer.
$13.7 Billion GPU Deal
Under the six-year agreement, the customer will buy GPU services from the company’s Maysville, Georgia, data center, which remains under development.
The roughly $13.7 billion order is split evenly across three tranches. The third tranche remains subject to the customer approving RUM Group’s proposed delivery date.
The deal also includes a warrant allowing the customer to buy up to 50.8 million RUM Group Class A shares for 1 cent each. Half of those shares can vest as the customer purchases the three initial GPU tranches. The remaining shares could vest through additional GPU-service agreements.
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Financing Risk Remains
However, the company faces a major funding requirement. It said it must build and operate the data center while buying large quantities of GPUs and related equipment.
The company said it did not have financing in place for those expenditures when it filed the 8-K. It expects to rely substantially on debt, equity or both.
That creates execution risk. New equity could dilute existing shareholders, while additional debt could increase leverage. A financing shortfall could also delay construction, GPU purchases and delivery milestones.
RUM Group Raises Northern Data Stake
Separately, RUM said Thursday it expects to increase its stake in Northern Data AG from 85.2% to about 98%.
RUM Group plans to acquire additional shares from Tether Investments under an existing agreement. Tether recently agreed to acquire about 8.26 million Northern Data shares.
RUM Group also plans to start squeeze-out proceedings under German law to acquire the remaining roughly 2%. That would give the company full ownership of Northern Data.
RUM Group Price Action
RUM Price Action: RUM Group shares were up 10.88% at $7.95 during premarket trading on Monday, according to Benzinga Pro data.
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