Stablecoin issuer Tether announced Friday that it is investing $775 million in streaming video platform Rumble, a rival to YouTube that describes itself as an anti-censorship platform.
The company behind the USDT stablecoin called the transaction a “firm contract” and will begin with an underlying investment of $250 million in cash.
Tether said the transaction will ultimately see the cryptocurrency company receive 103.3 million shares of Rumble common stock. Rumble CEO Chris Pavolski will retain a controlling stake in the streaming platform. At $7.50 per share of common stock, Tether’s $775 million investment in Rumble is expected to close in early 2025.
Following the announcement, Rumble’s RUM stock rose 40.75% in after-hours trading and is currently priced at $10.57. Market Watch.
Launched in 2013 by tech entrepreneur Chris Pavlovksi, Rumble is a video streaming platform focused on freedom of expression. It has become a popular alternative to YouTube for conservative and far-right content creators.
“Tether’s investment in Rumble reflects our shared values of decentralization, independence, transparency, and the fundamental rights to freedom of expression,” Tether CEO Paolo Ardoino said in a statement. “In today’s world, legacy media has increasingly eroded trust, creating an opportunity for platforms like Rumble to provide a trusted, uncensored alternative.”
Tether and Rumble did not immediately respond to requests for comment. decryption.
Breaking News: Rumble Announces $775 Million Strategic Investment from Tether
“Tether plans to pursue a meaningful advertising, cloud and cryptocurrency payment solutions relationship with Rumble beyond the initial shareholder equity.” – @paoloardoino pic.twitter.com/eDm2O8GIyY
— Rumble 🏴☠️ (@rumblevideo) December 20, 2024
“We truly believe that Tether is the perfect partner to stand behind Rumble as it prepares for its next phase of growth,” Chris Pavlovski, Rumble’s president and CEO, said in a statement.
In November, Rumble’s board approved the creation of Bitcoin reserves as the price of BTC rose towards $100,000. Rumble said the company plans to purchase up to $20 million in Bitcoin, joining other public companies including MicroStrategy, Marathon Digital Holdings and Tesla that have added Bitcoin to their balance sheets.
“We believe the world is still in the early stages of Bitcoin adoption,” Pavlovsky said at the time. “Bitcoin adoption has accelerated with the recent election of a cryptocurrency-friendly U.S. presidential administration and increased institutional adoption.” . “Unlike other government-issued currencies, Bitcoin is not diluted through endless money printing, making it a valuable inflation hedge and a great addition to our treasury.”
Editor: Andrew Hayward
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