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Rumble Secures $775 Million Investment from Tether
In a significant move, video-sharing platform Rumble has secured a substantial $775 million investment from stablecoin issuer Tether. The massive funding injection will be used to fuel growth initiatives and provide an immediate liquidity event for stockholders participating in the self-tender offer.
As part of the deal, Tether will purchase 103,333,333 shares of Rumble Class A Common Stock at $7.50 per share. CEO Chris Pavlovski is expected to retain his controlling interest in the company despite this major investment. The Rumble stock saw a significant surge of 35% to $9.80 in post-market trading, rising from its Friday closing price of $7.18.
Pavlovski expressed enthusiasm for the collaboration between the two companies, highlighting the shared values of decentralization, independence, and transparency. He emphasized that this partnership would not only drive growth but also provide an immediate liquidity event for stockholders participating in the self-tender offer.
The CEO of Tether, Paolo Ardoino, echoed these sentiments, stating that the companies share a deep connection between their missions around freedom of speech, financial freedom, independence, and resilience. When questioned about the reasoning behind Tether’s investment in Rumble on platform X by Autism Capital, Ardoino explained that both companies value free speech, financial freedom, independence, and resilience.
The press release 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. This comes after Rumble’s board approved a treasury strategy in late November to allocate up to $20 million to Bitcoin, further reinforcing the company’s interest in the cryptocurrency.
The transaction is expected to close in the first quarter of 2025, pending regulatory and antitrust clearances.
Source: cryptobriefing.com
