Key takeaways
- Rumble secured a $775 million investment from Tether to fuel growth and shareholder liquidity.
- Tether’s partnership with Rumble sparks speculation over tipping and crypto payment integrations
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Rumble has secured a $775 million investment from stablecoin issuer Tether, marking a major 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 a price of $7.50 per share.
The video-sharing platform will allocate $250 million of the proceeds to growth initiatives, with the remainder of the funds supporting a tender offer for up to 70 million shares of its Class A common stock.
Despite the transaction, CEO Chris Pavlovski will retain his majority stake 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 analysis data.
Pavlovsky expressed his enthusiasm for the collaboration, highlighting the deep connection between the crypto and free speech communities.
He noted that the $250 million cash infusion would not only fuel Rumble’s growth initiatives, but also provide an immediate liquidity event for shareholders participating in the tender offer.
Paolo Ardoino, CEO of Tether, echoed these sentiments, emphasizing the alignment of companies’ missions around decentralization, independence and transparency.
When asked 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 free speech, financial freedom, independence and resilience.
In the press release, Ardoino said: “Finally, beyond our initial participation as a shareholder, Tether intends to move towards a meaningful relationship in advertising, cloud and security solutions. encrypted payments with Rumble. »
This remark further fueled speculation among X users about how the partnership could involve leveraging Tether as a tipping and payment method, thereby moving 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, furthering the company’s interest in crypto.
The Tether transaction is expected to close in the first quarter of 2025, subject to regulatory and antitrust approvals.
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