Tether, the issuer of the USDT stablecoin, has made a significant investment of $775 million in Rumble, a video streaming platform that aims to compete with YouTube.
Rumble, which was launched in 2013, has positioned itself as a platform for free speech and has attracted a user base that includes conservative and far-right content creators.
This investment will begin with an initial cash infusion of $250 million and Tether will acquire 103.3 million shares of Rumble common stock.
The announcement of this investment has already had a positive impact on Rumble's stock, with shares rising 40.75% in after-hours trading.
Rumble's CEO, Chris Pavlovski, will retain control of the company. Tether's investment is seen as a validation of Rumble's mission to provide an alternative to mainstream media.
Tether's CEO, Paolo Ardoino, emphasized the shared values of decentralization, independence, and transparency between Tether and Rumble.
Tether plans to explore additional collaborations with Rumble, including advertising, cloud services, and cryptocurrency payment solutions.
Rumble's Board of Directors has also approved the creation of a Bitcoin reserve, with plans to allocate up to $20 million for Bitcoin purchases.
Rumble's CEO, Chris Pavlovski, has expressed a positive outlook on Bitcoin and believes that the world is still in the early stages of its adoption.
The decision to establish a Bitcoin reserve reflects Rumble's commitment to innovation and financial prudence.
This partnership between Tether and Rumble highlights the convergence between the cryptocurrency sector and traditional media, and could lead to new business models that prioritize user engagement and content freedom.