Key conclusions
- Rumble secured a $775 million investment from Tether to drive shareholder growth and liquidity.
- Tether’s partnership with Rumble sparks speculation about tipping and crypto payment integrations
The Rumble has secured a $775 million investment from stablecoin issuer Tether, marking a significant milestone for the video-sharing platform.
As part of the deal, Tether will purchase 103,333,333 Rumble Class A common shares at $7.50 per share.
The video-sharing platform will use $250 million of the proceeds for growth initiatives, with the remaining funds to support a private placement offering of up to 70 million shares of Class A common stock.
Despite the transaction, CEO Chris Pavlovski will retain his controlling stake in the company.
After the announcement, Rumble shares jumped 35% to $9.80 in premarket trading, up from their Friday close of $7.18, according to market survey data.
Pavlovski expressed his excitement about the collaboration and emphasized the deep connection between the crypto community and free speech.
He noted that the $250 million cash injection will not only fuel Rumble’s growth initiatives, but also provide an immediate liquidity event for shareholders participating in the self-authored offering.
Tether CEO Paolo Ardoino echoed these sentiments, emphasizing the alignment of the companies’ missions with decentralization, independence and transparency.
When asked by Autism Capital on Platform X about Tether’s reasons for investing in Rumble, Ardoino explained that the two companies share values such as freedom of speech, financial freedom, independence and resilience.
In a press release, Ardoino stated, “Finally, in addition to our original shareholder stake, Tether intends to move toward a meaningful relationship with advertising, cloud, and crypto payment solutions with Rumble.”
The remark further fueled speculation among users on X about how the partnership could involve leveraging Tether as a tipping and payment medium, Rumble’s transition from traditional payment rails to crypto rails.
At the end of November, the Rumble Board of Directors approved a treasury strategy for the allocation of up to $20 million in Bitcoinwhich further strengthens the company’s interest in crypto.
The Tether transaction is expected to close in the first quarter of 2025, subject to regulatory and antitrust approvals.
