Stablecoin issuer Tether announced on Friday that it is investing $775 million in YouTube rival video platform Rumble, which bills itself as an anti-censorship platform.
The company behind the USDT stablecoin called the deal a “guaranteed deal,” and will start with an initial investment of $250 million in cash.
The deal, said Tether, will see the cryptocurrency company finally receive 103.3 million shares of Rumble common stock. Rumble CEO Chris Pavolsky holds a controlling stake in the streaming platform. At $7.50 per common share, Tether's $775 million investment in Rumble is expected to close in early 2025.
Following the announcement, shares of Rumble RUM rose 40.75% in afternoon trading and are currently trading at $10.57, according to MarketWatts.
In the year Launched in 2013 by tech entrepreneur Chris Pavlovksi, Rumble is a video streaming platform focused on free speech. It has become a popular alternative to YouTube for conservative and far-right content creators.
“Teter's investment in Rumble reflects our shared values of decentralization, freedom, transparency and the fundamental right to expression,” Tether CEO Paolo Arduino said in a statement. “In today's world, legacy media is increasingly eroding trust, creating an opportunity for platforms like Rumble to provide an honest, uncensored alternative.”
Tether and Rumble did not immediately respond to requests for comment from Decrypt.
“I believe Tether is the perfect partner to put a rocket pack on Rumble's back as we prepare for the next phase of growth,” Rumble Chairman and CEO Chris Pawlowski said in a statement.
In November, Rumble's board of directors approved the creation of a Bitcoin stockpile as the price of BTC rose to $100,000. Rumble said the company plans to buy up to $20 million in bitcoin, joining other publicly traded companies that have added bitcoin to their balance sheets, including MicroStrategy, Marathon Digital Holdings and Tesla.
“We believe that the world adoption of Bitcoin, accelerated with the recent election of a crypto-friendly US presidential administration and institutional adoption, is still in the early stages,” Pavlovsky said at the time. “Unlike any other government-issued currency, Bitcoin is not subject to inflation, allowing it to be a valuable addition to our coffers.”
Edited by Andrew Hayward.
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