Tether, the global leader in the stablecoin market, has strategically invested $775 million in Rumble, an emerging video-sharing platform that is positioning itself as a decentralized alternative to YouTube.
This significant investment was made as Tether's revenues have surged, with their revenues exceeding $10 billion this year.
Tether Focuses on Media Innovation with Rumble Investment
On December 20, the USDT issuer announced a $775 million strategic investment in Rumble, a video-sharing platform and cloud service provider that holds Bit.
According to the statement, the proposal includes an initial $250 million cash injection into Rumble and an offer to acquire up to 70 million shares at $7.50 per share, totaling $775 million. However, Rumble's chairman and CEO, Chris Pavlovski, will maintain a controlling stake in the company.
Tether's CEO, Paolo Ardoino, expressed that this investment reflects the two companies' commitment to decentralization, transparency, and freedom. He emphasized Rumble's role as a trustworthy platform challenging the declining trust in mainstream media.
"Tether deeply believes in the fundamental values of freedom of expression and financial freedom. Our strategic investment in Rumble greatly emphasizes Tether's focus on supporting technologies and companies that provide independence and resilience to individuals." - Paolo Ardoino, Tether CEO
Meanwhile, Pavlovski views this financial support as a tool to directly compete with YouTube. Indeed, YouTube currently has around 2.5 billion monthly active users worldwide, making it a global video-sharing platform.
"YouTube, watch out. I'm coming for your global monopolistic market share." - Chris Pavlovski, Rumble CEO
Tether is well-known for its stablecoin USDT, which has a market capitalization of around $140 billion. This year, the company has significantly expanded its investment portfolio into areas less related to stablecoins, such as agriculture, Bit mining, artificial intelligence, and education.
In a recent Bloomberg interview, Ardoino revealed that Tether will end the year with over $10 billion in revenue. He also mentioned that the company has reinvested more than half of this revenue to strengthen its position in the stablecoin market, including recent investments in European stablecoin ventures StablR and Quantoz.
Going forward, Ardoino announced plans to invest additional revenue into artificial intelligence. On the X social media platform, the CEO stated that the company will launch an AI platform in early 2025. This initiative will expand Tether's technological footprint and open up new growth opportunities in emerging markets.
"Just received the draft of Tether's AI platform website. Launching soon, target Q1 2025." - Paolo Ardoino, Tether CEO
