Just a few weeks after Rumble caused a stir with its Bitcoin accumulation plan, Tether has announced a strategic investment of $775 million in this video platform.
Tether invests $775 million in the Rumble video platform
On December 21, 2024, Tether, the world's largest stablecoin issuer USDT, announced a strategic investment of $775 million in Rumble, an online video sharing platform similar to YouTube.
Tether Announces $775 Million Strategic Investment in Rumble ( @rumblevideo ) to Boost Decentralized and Community-Owned Media Platforms
— Tether (@Tether_to) December 20, 2024
Read more:https://t.co/2lRvcd6LJW
Specifically, Tether has committed to invest around $775 million, of which $250 million will be transferred directly to Rumble's account. The remaining funds will be used by Tether to support Rumble in acquiring up to 70 million shares at a price of $7.5 per share.
The total investment value from Tether is expected to be equivalent to 103.3 million Rumble shares. After the transaction is completed, Mr. Chris Pavlovski, Chairman and CEO of Rumble, will still maintain control of the company.
The entire transaction is expected to be completed by early 2025.
This information immediately created a wave of FOMO in the stock market, with Rumble's RUM stock price jumping 40.75% in after-hours trading, reaching $10.57.
RUM stock price movement in the last 24 hours. Source: Google Finance (21/12/2024)
In a post on X, Rumble CEO Chris Pavlovski said he has never been more excited about Rumble's future. He emphasized:
"Tether is the ideal partner to take Rumble to new heights. With their support, we will continue to challenge the 'giant' YouTube in the global market."
Today Rumble enters a new era.
— Chris Pavlovski 🏴☠️ (@chrispavlovski) December 20, 2024
We partnered with Tether, a company that exports American values to the entire world, and who are major advocates for free speech.
I couldn't be more excited to have them as partners and be working with @paoloardoino.
LFG!
Sharing the same view, Tether CEO Paolo Ardoino affirmed:
"This investment goes far beyond the meaning of a typical financial transaction. It is a testament to the commitment between Tether and Rumble in creating a free, transparent online space where the voice of every individual is respected."
Thanks Chris ♥️
— Paolo Ardoino 🤖🍐 (@paoloardoino) December 21, 2024
Excited for our partnership.
Our common quest for protecting freedom brought us and our companies together.
Future is bright. https://t.co/qSkZiBoNXr
Rumble, a video platform founded in 2013 by Chris Pavlovski, is striving to compete with YouTube by attracting users with its commitment to freedom of speech and a no-censorship content policy.
Although the platform has around 67 million monthly active users, it has not yet been able to generate profits. In Q3 2024, Rumble recorded revenue of $25.1 million, up 39% year-over-year, but still had a net loss of $31.5 million.
In November 2024, Rumble officially approved a plan to allocate a portion of its cash reserves to Bitcoin worth up to $20 million.
As for Tether, the company is making significant strides in the traditional market to expand its business activities and diversify its revenue sources.
In the Q3 2024 activity report, Tether Investment, the company's investment management arm, increased its equity value to $7.7 billion, up from $6.2 billion in the previous quarter, with the notable investment of $102 million in the agricultural company Adecoagro. Additionally, CEO Paolo Ardoino revealed that Tether Investment also plans to inject $5 billion into the commodities market by 2026 to provide lending capital and generate stable returns from interest rates.
Compiled by Coin68
