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Rumble Secures $775 Million Investment from Tether
Video-sharing platform Rumble has secured a substantial $775 million investment from stablecoin issuer Tether, marking a significant milestone for the company. The partnership is expected to fuel growth initiatives and provide liquidity for stockholders participating in a self-tender offer.
As part of the deal, Tether will acquire 103,333,333 shares of Rumble’s Class A Common Stock at $7.50 per share. The funds will be allocated towards furthering the company’s expansion plans, with an additional portion supporting a buyback for up to 70 million shares of its Class A Common Stock.
Following the announcement, Rumble’s stock price surged 35%, reaching $9.80 in after-hours trading. This significant growth indicates a strong interest from investors and a vote of confidence in the company’s direction under CEO Chris Pavlovski.
Pavlovski expressed enthusiasm for the partnership, highlighting the synergies between the crypto and free speech communities. He emphasized that this injection of capital will not only accelerate 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, emphasizing the alignment of their missions around decentralization, independence, and transparency. When questioned about the reasoning behind Tether’s investment in Rumble, Ardoino explained that both companies share values such as freedom of speech, financial freedom, independence, and resilience.
In a remark that has sparked speculation among users on platform X, 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 comment has fueled discussions about the potential for leveraging Tether as a medium for tipping and payments, which could transition Rumble from traditional payment rails to crypto rails.
In a recent move, Rumble’s board approved a treasury strategy to allocate up to $20 million towards Bitcoin. This decision underscores the company’s increasing interest in cryptocurrency.
Source: cryptobriefing.com
