Tether to Invest $775 Million in Video-Sharing Platform Rumble
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Highlights:
- Tether invests $775 million in Rumble, buying 103 million shares at $7.50 each.
- Rumble’s stock jumps over 50%, reaching $10.90 in after-hours trading after the announcement.
- Tether and Rumble aim to collaborate on advertising, cloud services, and crypto payment solutions.
Tether, the issuer of the world’s largest stablecoin, USDT, is set to invest $775 million in YouTube-alternative platform Rumble, according to a Reuters wire. Tether will buy 103,333,333 shares of Rumble Class A Common Stock. The purchase price is set at $7.50 per share. Despite the large investment, Rumble CEO Chris Pavlovski will keep his super-majority voting rights. Tether will not have a seat on the board.
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Following the announcement, Rumble’s (RUM) share price soared 51.60% in after-hours trading, hitting $10.90, according to Google Finance data. Rumble stated it would use $250 million of the funds to support growth initiatives. The remaining $525 million will be used to buy back up to 70 million shares of Rumble’s Class A Common Stock.
Tether CEO Paolo Ardonio mentioned in a Dec. 20 X post that Tether’s investment in Rumble highlights the company’s focus on supporting technology and businesses that empower people. This, he said, promotes independence and resilience in society.
Tether deeply believes in the fundamental values of freedom of speech and financial freedom.
Our strategic investment in Rumble greatly underscores @Tether_to 's focus in supporting technology and companies that empower humans, delivering independence and resilience to our… https://t.co/vHYVbQJnKk
— Paolo Ardoino 🤖🍐 (@paoloardoino) December 20, 2024
Tether and Rumble’s Shared Vision
Ardonio expressed optimism about Chris Pavlovski and his team’s achievements. He looked forward to collaborating on a shared vision. Tether and Rumble are planning to work together on advertising, cloud, and crypto payment solutions. When Autism Capital asked about Tether’s investment in Rumble on platform X, Ardoino responded. He explained that both companies share values like freedom of speech, financial freedom, independence, and resilience.
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
Pavlovski shared a similar sentiment in a Dec. 20 X post. He expressed excitement about the future and his determination to challenge YouTube, the world’s largest video-sharing platform. He warned, “YouTube, lookout. I’m coming for your monopolistic market share globally.”
He added:
“This transaction provides an immediate liquidity event for all of our stockholders who elect to participate in the self tender offer. 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’s Strategic Moves and Financial Performance
These developments follow Rumble’s recent announcement to allocate up to $20 million of its treasury to Bitcoin. This decision highlights the platform’s strategy to diversify its cash reserves. Rumble aims to use Bitcoin as a hedge against inflation.
In Q3, Rumble earned $25.1 million in revenue, a 39% increase from last year. However, the company posted a net loss of $31.5 million, up from $29 million in Q3 last year. Rumble has about 67 million active users on average monthly, mainly from a conservative audience. The platform’s cloud services business hosts Truth Social. Peter Thiel, Vivek Ramaswamy, and Vice President-elect JD Vance invested in Rumble in 2021, when it was valued at $500 million.
Tether Expands Portfolio with Strategic Investments and AI Platform Launch
Tether is diversifying its portfolio, using profits from USDT’s backing assets. These assets generated $2.5 billion in net profit during Q3. This investment marks Tether’s continued expansion into AI, decentralized messaging, and video-sharing sectors. Paolo Ardoino recently shared that Tether aims to launch its AI platform by Q1 next year. Though details are scarce, the platform will likely feature privacy-focused Peer-to-Peer AI Agents.
Just got the draft of the site for Tether's AI platform.
Coming soon, targeting end Q1 2025.🪿🤜🤛 (goosebumps)
— Paolo Ardoino 🤖🍐 (@paoloardoino) December 20, 2024
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