Stablecoin issuer Tether announced on Friday that it is investing $775 million in streaming video platform Rumble, a rival to YouTube 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, Tether said, will see the cryptocurrency company ultimately 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 share of common stock, Tether’s $775 million investment in Rumble is expected to close in early 2025.
Tether Announces $775 Million Strategic Investment in Rumble ( @rumblevideo ) to Boost Decentralized and Community-Owned Media Platforms
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— Tether (@Tether_to) December 20, 2024
Following the announcement, Rumble’s RUM stock rose 40.75% in after-hours trading and is currently priced at $10.57, according to MarketWatch.
Launched in 2013 by technology entrepreneur Chris Pavlovksi, Rumble is a video streaming platform focused on free speech. 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, legacy 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 requests for comment by Decrypt.
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.” – @paoloardoino pic.twitter.com/eDm2O8GIyY
— Rumble 🏴☠️ (@rumblevideo) December 20, 2024
“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,” Rumble chairman and CEO Chris Pavlovski said in a statement.
In November, Rumble’s Board of Directors approved the creation of a Bitcoin reserve as the price of BTC climbed toward $100,000. Rumble said the company plans to purchase up to $20 million in Bitcoin, joining other publicly traded companies, including MicroStrategy, Marathon Digital Holdings, and Tesla that have added Bitcoin to their balance sheets.
“We believe that the world is still in the early stages of the adoption of Bitcoin, which has recently accelerated with the election of a crypto-friendly U.S. presidential administration and increased institutional adoption,” Pavlovski said at the time. “Unlike any government-issued currency, Bitcoin is not subject to dilution through endless money-printing, enabling it to be a valuable inflation hedge and an excellent addition to our treasury.”
Edited by Andrew Hayward
