Stablecoin issuer Tether revealed on Friday its decision to invest $775 million in Rumble, a streaming video platform that positions itself as an anti-censorship alternative to YouTube.
The developers of the USDT stablecoin outlined the deal as a “definitive agreement,” beginning with an initial $250 million cash injection.
According to Tether, the arrangement will result in the cryptocurrency company obtaining 103.3 million shares of Rumble common stock. Despite this, Rumble CEO Chris Pavolski will maintain a majority stake in the platform. The $775 million investment at $7.50 per share is anticipated to be finalized by early 2025.
After the announcement, Rumble’s RUM stock surged 40.75% in after-hours trading, currently valued at $10.57, as reported by MarketWatch.
Established in 2013 by tech entrepreneur Chris Pavlovksi, Rumble serves as a video streaming platform emphasizing freedom of speech and has gained popularity as an alternative to YouTube for conservative and far-right content creators.
Tether CEO Paolo Ardoino stated, “Tether’s investment in Rumble reflects our shared values of decentralization, independence, transparency, and the fundamental right to free expression. In the current media landscape where trust is fading, platforms like Rumble offer a credible, uncensored option.”
Tether and Rumble have not yet responded to Decrypt’s requests for comments.
BREAKING NEWS: Rumble Announces $775 Million Strategic Investment from Tether
“Beyond our initial shareholder stake, Tether intends to drive towards a meaningful advertising, cloud, and crypto payment solutions relationship with Rumble.” – @paoloardoinopic.com/eDm2O8GIyY
Rumble chairman and CEO Chris Pavlovski expressed, “I truly believe Tether is the perfect partner that can put a rocket pack on the back of Rumble as we prepare for our next phase of growth.”
In light of Bitcoin’s rising value, Rumble’s Board of Directors approved the creation of a Bitcoin reserve, with plans to purchase up to $20 million in Bitcoin. This move aligns Rumble with other companies like MicroStrategy, Marathon Digital Holdings, and Tesla that have added Bitcoin to their assets.
Pavlovski commented, “We believe Bitcoin is in the early stages of adoption, seeing a boost from a crypto-friendly U.S. presidential administration and increasing institutional usage. Bitcoin’s immunity to inflation through printing makes it a solid inflation hedge and treasury asset.”
Edited by Andrew Hayward
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