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Tether, the world’s largest stablecoin issuer, has announced a substantial investment in Rumble (Nasdaq: RUM), a prominent video-sharing platform known for its commitment to free speech.
The deal, valued at $775 million, includes a $250 million cash infusion to support Rumble’s growth initiatives and a tender offer for up to 70 million shares at $7.50 each. Upon completion, Tether will hold 103.3 million shares of Rumble, while CEO Chris Pavlovski will retain his controlling stake, according to an announcement.
This strategic partnership aims to bolster decentralized media by aligning Rumble's video platform and cloud services with Tether’s blockchain-centric vision.
Paolo Ardoino, CEO of Tether, emphasized the shared principles of decentralization and transparency, highlighting the collaboration as a step toward creating uncensored, independent content platforms: "Tether’s investment in Rumble reflects our shared values of decentralization, independence, transparency, and the fundamental right to free expression. In today’s world, legacy media has increasingly eroded trust, creating an opportunity for platforms like Rumble to offer a credible, uncensored alternative. This collaboration aligns with our long-standing commitment to empowering technologies that promote freedom and challenge centralized systems, as demonstrated through our recent collaborations and initiatives."
Tether deeply believes in the fundamental values of freedom of speech and financial freedom.
— Paolo Ardoino 🤖🍐 (@paoloardoino) December 20, 2024
Our strategic investment in Rumble greatly underscores @Tether_to 's focus in supporting technology and companies that empower humans, delivering independence and resilience to our… https://t.co/vHYVbQJnKk
Pavlovski echoed the sentiment, citing the strong synergy between cryptocurrency and free speech communities as a foundation for this collaboration, saying "Many people may not realize the incredibly strong connection between cryptocurrency and free speech communities, rooted in a passion for freedom, transparency, and decentralization."
Rumble plans to use the proceeds to accelerate growth, moving toward its goal of EBITDA breakeven in 2025. The investment also provides liquidity for shareholders through the tender offer. Market reactions were immediate, with Rumble’s stock price surging by 50.07% to $10.79 in after-hours trading.
This move comes amid growing interest in alternative media platforms and blockchain-backed technologies, with both companies positioning themselves at the forefront of a decentralized digital landscape. The transaction is expected to close in Q1 2025, pending regulatory approvals and other conditions.
For Rumble, this partnership could provide the resources and network required to challenge legacy platforms like YouTube effectively.
Tether previously announced record-breaking profits for the third quarter of 2024 of $2.5 billion, contributing to a 2024 nine-month consolidated profit of $7.7 billion. The company’s investment arm, Tether Investments, has further expanded its portfolio to $7.7 billion, with investments in various sectors including renewable energy, Bitcoin mining, AI, telecommunications, and education.
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