In summary
- Tether announced a $775 million investment in Rumble, a video platform focused on freedom of expression.
- The initial investment of $250 million will give Tether 103.3 million shares of Rumble common stock.
- Rumble shares rose 40.75% on the news, reaching $10.57 per share.
Stablecoin issuer Tether announced Friday that it is investing $775 million in video streaming platform Rumble, a YouTube rival that bills itself as an anti-censorship platform.
The company behind the USDT stablecoin called the deal a “definitive agreement,” and it would begin with a primary investment of $250 million in cash.
The deal, according to Tether, will see the Cryptocurrency company receive 103.3 million shares of Rumble common stock. Rumble CEO Chris Pavolski will retain a controlling stake in the streaming platform. At $7.50 per common share, Tether’s $775 million investment in Rumble is expected to close in early 2025.
Following the announcement, Rumble’s RUM shares rose 40.75% in after-hours trading and are currently priced at $10.57, according to MarketWatch.
Launched in 2013 by tech entrepreneur Chris Pavlovski, Rumble is a video streaming platform focused on freedom of expression. It has become a popular alternative to YouTube for conservative and far-right content creators.
“Tether’s investment in Rumble reflects our shared values of decentralization, independence, transparency and the fundamental right to free expression,” Tether CEO Paolo Ardoino said in a statement. “In today’s world, traditional media has increasingly eroded trust, creating an opportunity for platforms like Rumble to offer a credible, uncensored alternative.”
Tether and Rumble did not immediately respond to Decrypt’s requests for comment.
“I truly believe Tether is the perfect partner that can put a rocket on Rumble’s back as we prepare for our next phase of growth,” Rumble president and CEO Chris Pavlovski said in a statement.
In November, the Rumble Board of Directors approved the creation of a Bitcoin reserve as the price of BTC approached $100,000. Rumble said the company plans to purchase up to $20 million in Bitcoin, joining other publicly traded companies such as MicroStrategy, Marathon Digital Holdings and Tesla that have added Bitcoin to their balance sheets.
“We believe the world is still in the early stages of Bitcoin adoption, which has recently accelerated with the election of a crypto-friendly US presidential administration and a rise in institutional adoption,” Pavlovski said then. “Unlike any government-issued currency, Bitcoin is not subject to dilution through endless money printing, allowing it to be a valuable hedge against inflation and an excellent addition to our treasury.”
Edited by Andrew Hayward
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