Key Takeaways
- Rumble secured a $775 million investment from Tether to fuel growth and stockholder liquidity.
- Tether’s partnership with Rumble sparks speculation on tipping and crypto payment integrations
Share this article
Rumble has secured a $775 million investment from stablecoin issuer Tether, marking a significant milestone for the video-sharing platform. As part of the deal, Tether will purchase 103,333,333 shares of Rumble Class A Common Stock at $7.50 per share.The video-sharing platform will allocate $250 million of the proceeds to growth initiatives, with the remaining funds supporting a self-tender offer for up to 70 million shares of its Class A Common Stock. Despite the transaction, CEO Chris Pavlovski will retain his controlling interest in the company.Following the announcement, Rumble shares soared 35% to $9.80 in post-market trading, up from their Friday closing price of $7.18, according to market screener data.Pavlovski expressed his enthusiasm for the collaboration, emphasizing the deep connection between the crypto and free speech communities. He noted that the $250 million cash injection would not only fuel Rumble’s growth initiatives but also provide an immediate liquidity event for stockholders participating in the self-tender offer.Tether CEO Paolo Ardoino echoed these sentiments, highlighting the alignment of the companies’ missions around decentralization, independence, and transparency. When questioned on platform X by Autism Capital about the reasoning behind Tether’s investment in Rumble, Ardoino explained that the two companies share values such as freedom of speech, financial freedom, independence, and resilience.In the press release, Ardoino stated, “Lastly, beyond our initial shareholder stake, Tether intends to drive towards a meaningful advertising, cloud, and crypto payment solutions relationship with Rumble.” This remark further fueled speculation among users on X about how the partnership might involve leveraging Tether as a medium for tipping and payments, transitioning Rumble from traditional payment rails to crypto rails.In late November, Rumble’s board approved a treasury strategy to allocate up to $20 million to Bitcoin, further reinforcing the company’s interest in crypto. The Tether transaction is expected to close in the first quarter of 2025, subject to regulatory and antitrust clearances.
Share this article
