Tether, the global leader in the stablecoin market, has strategically allocated 775 million USD to invest in Rumble, an emerging video-sharing platform positioning itself as a decentralized alternative to YouTube.
This significant investment comes at a time when Tether's profits have skyrocketed, with revenues exceeding 10 billion USD this year.
Tether Reshapes the Media Landscape with Investment in Rumble
On December 20, the USDT issuer announced a strategic investment of 775 million USD in Rumble, a video-sharing platform that holds Bitcoin and provides cloud services.
According to the statement, the proposal includes an initial 250 million USD funding for Rumble and an offer to purchase up to 70 million shares at 7.50 USD per share, totaling 775 million USD. However, Rumble's Chairman and CEO, Chris Pavlovski, will maintain control over the company.
Paolo Ardoino, CEO of Tether, expressed that this investment reflects the commitment of both companies to decentralization, transparency, and freedom. He emphasized Rumble's role as a trusted platform challenging the current position of mainstream media, which has faced a decline in trust.
"Tether deeply believes in the fundamental values of freedom of speech and financial freedom. Our strategic investment in Rumble underscores Tether's focus on supporting technology and companies that empower people, bringing independence and resilience to our social fabric," Ardoino commented.
Meanwhile, Pavlovski sees this financial support as a tool to directly compete with YouTube. The fact is that YouTube is the dominant global video-sharing platform with around 2.5 billion active users as of March 2024.
"YouTube, get ready. I'm coming for your global monopoly," Pavlovski affirmed.
Tether, primarily known for its USDT stablecoin with a market capitalization of around 140 billion USD, has significantly expanded its investment portfolio this year. The company has ventured into various sectors, including agriculture, Bitcoin mining, artificial intelligence, and education.
In a recent interview with Bloomberg, Ardoino shared that Tether will end the year with profits exceeding 10 billion USD. He also mentioned that the company has reinvested more than half of these profits to strengthen its position in the stablecoin market, including recent investments in the European stablecoin projects StablR and Quantoz.
Looking ahead, Ardoino announced plans to invest more profits into artificial intelligence. On the social media platform X, the CEO stated that the company will launch its AI platform in early 2025. This initiative is expected to expand Tether's technology footprint and open up new growth opportunities in emerging markets.
"Just received a draft of the website for Tether's AI platform. Coming soon, expected by Q1 2025," Ardoino said.
