Rumble received a $775 million investment from Tether
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Rumble secured a $775 million investment from Tether for fuel growth and shareholder liquidity. Tether's partnership with Ramble sparks speculation on tipping and crypto payment integrations
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Rumble has secured a $775 million investment from statcoin issuer Tether, marking a milestone for the video-sharing platform.
As part of the deal, Tether will purchase 103,333,333 shares of Rumble Class A common stock at $7.50 per share.
The video-sharing platform will earmark $250 million of the proceeds for growth initiatives, while the rest of the money will support an initial public offering of up to 70 million shares of its Class A common stock.
Despite the transaction, CEO Chris Pawlowski will retain a controlling interest in the company.
Following the announcement, Rumble shares rose 35% to $9.80 in after-market trading, up $7.18 from Friday's closing price, according to market filings.
Pavlovsky expressed his enthusiasm for the collaboration, emphasizing the deep connection between the crypto and free speech communities.
He noted that the $250 million cash injection will not only fuel Rumble's growth initiatives, but also facilitate immediate liquidity for shareholders participating in the self-bid.
Tether CEO Paolo Arduino echoed these sentiments, highlighting the company's alignment of missions around decentralization, freedom and transparency.
When asked at Forum X by Autism Capital about the rationale behind the Tether Ramble, Arduino explained that the two companies share values such as freedom of speech, financial freedom, independence and resilience.
In a press release, Arduino said, “Ultimately, beyond the initial stake, Tether intends to make meaningful connections with Rumble for advertising, cloud and crypto payment solutions.”
This comment fueled further speculation on how partnerships between users on X could include making Tether a payment and distribution platform, moving Rumble from traditional payment rails to crypto rails.
In late November, Rumble's board approved a treasury strategy to allocate up to $20 million to Bitcoin, further strengthening the company's interest in the crypto.
The Tether transaction is expected to close in the first quarter of 2025, subject to regulatory and antitrust clearances.
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