Stablecoin issuer Tether announced the investment on Friday. $775 million Streaming video platform Rumble is a YouTube rival that bills itself as an anti-censorship platform.
The company behind the USDT stablecoin is calling the deal a “definitive agreement” and will begin with an initial investment of $250 million in cash.
As a result of the transaction, the cryptocurrency company will ultimately receive 103.3 million shares of Rumble common stock, Tether said. Rumble CEO Chris Pavolski will retain control of the streaming platform. At $7.50 per common share, Tether's $775 million investment in Rumble is expected to close in early 2025.
After the announcement, Rumble's RUM stock rose 40.75% in after-hours trading, with its current price at $10.57. market watch.
Founded 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 freedom of expression,” Tether CEO Paolo Ardoino said in a statement. ” “In today's world, trust in legacy media is increasingly eroded, creating an opportunity for platforms like Rumble to provide a trusted, uncensored alternative media.”
Tether and Rumble did not immediately respond to requests for comment. decryption.
“We truly believe Tether is the perfect partner to strongly support Rumble as we prepare for our next phase of growth,” Chris Pavlovsky, Rumble Chairman and CEO, said in a statement. ” he said.
In November, Rumble's board of directors approved the creation of a Bitcoin reserve fund as the price of BTC rose towards $100,000. Rumble said the company plans to buy up to $20 million in Bitcoin, joining other publicly traded companies that have added Bitcoin to their balance sheets, including MicroStrategy, Marathon Digital Holdings, and Tesla.
Pavlovsky said at the time, “I believe the world is still in the early stages of Bitcoin adoption, but the recent arrival of a crypto-friendly US presidential administration and increased institutional adoption have led to Bitcoin adoption. It's accelerating.” “Unlike government-issued currencies, Bitcoin is not subject to dilution from endlessly printing money, making it a valuable inflation hedge and an excellent addition to the national treasury.”
Edited by Andrew Hayward
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