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Rumble has secured a $775 million investment from Tether to foster growth and shareholder liquidity. Tether and Rumble partnership sparks speculation about chip and crypto payment integration
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Rumble has secured a $775 million investment from stablecoin issuer Tether, marking a significant milestone for the video-sharing platform.
As part of the transaction, 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 remaining funds supporting a tender offer for up to 70 million shares of its Class A common stock.
Despite the deal, CEO Chris Pavlovsky will retain control of the company.
Following the announcement, Rumble shares jumped 35% to $9.80 in post-market trading from Friday’s closing price of $7.18, according to Market Screener data.
Mr. Pavlovsky emphasized the deep ties between the cryptocurrency community and the free speech community and expressed his enthusiasm for cooperation.
He noted that the $250 million cash injection will not only facilitate Rumble’s growth strategy, but will also provide an immediate liquidity event for shareholders participating in the tender offer.
Tether CEO Paolo Ardoino echoed these sentiments, emphasizing the alignment of the two companies’ missions around decentralization, independence, and transparency.
When asked about the reasoning behind Tether’s investment in Rumble by Autism Capital on Platform He explained that
“Finally, Tether intends to move beyond its initial shareholder investment and pursue a meaningful advertising, cloud and crypto payment solutions relationship with Rumble,” Ardoino said in a press release.
The remarks further fueled speculation among users on .
In late November, Rumble’s board of directors approved a financial strategy to allocate up to $20 million in Bitcoin, further strengthening the company’s focus on cryptocurrencies.
The Tether transaction is expected to close in the first quarter of 2025, subject to regulatory and antitrust clearances.
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