Rumble, a video platform, has secured a significant investment of $775 million from Tether, a well-known stablecoin issuer. This investment aims to support Rumble's growth and provide liquidity for its stockholders.
As part of the agreement, Tether will acquire 103,333,333 shares of Rumble Class A Common Stock at a price of $7.50 per share. The funds from this investment will be utilized for growth initiatives and a self-tender offer for up to 70 million shares of Rumble's Class A Common Stock.
Following the announcement of the investment, Rumble's stock experienced a significant surge of 35% in post-market trading, reaching $9.80. Rumble's CEO, Chris Pavlovski, expressed excitement about the partnership, highlighting the connection between the crypto community and advocates of free speech.
Tether's CEO, Paolo Ardoino, emphasized the alignment of the two companies' missions and the potential for collaborations in advertising, cloud services, and crypto payment solutions. The integration of Tether's stablecoin into Rumble's platform could lead to the development of new tipping and payment systems.
Rumble's board has also approved a treasury strategy that allocates up to $20 million to Bitcoin, further demonstrating the company's interest in cryptocurrency.
The Tether transaction is expected to close in the first quarter of 2025, pending regulatory and antitrust clearances.