Tether invests $775 million in the video-sharing platform Rumble, Rumble's shares experienced a significant surge of 81% after the market closed on Dec 23

On December 20, 2024, Rumble, the video-sharing platform and cloud services provider, has secured a $775 million strategic investment from Tether, the prominent cryptocurrency firm that issues USDT stablecoin.

The investment includes $250 million in cash, with Tether also supporting Rumble’s tender offer for up to 70 million shares at $7.50 per share

Tether will acquire 103.3 million shares of Rumble's Class A Common Stock at $7.50 per share, totaling $775 million.

$250 million will be directed towards supporting Rumble's growth strategies.

The remaining funds will facilitate a self-tender offer for up to 70 million shares of Rumble's Class A Common Stock at the same price of $7.50 per share.

The investment and tender offer are anticipated to conclude in the first quarter of 2025.

Rumble's CEO, Chris Pavlovski, will maintain his controlling stake in the company. Tether will hold a minority position without rights to appoint board members.

This collaboration underscores a shared commitment to decentralization and free expression. Tether's CEO, Paolo Ardoino, emphasized that the partnership reflects mutual values of independence and transparency, aiming to offer credible, uncensored alternatives in today's media landscape.

Rumble's CEO, Chris Pavlovski, expressed enthusiasm for the collaboration, highlighting the strong connection between cryptocurrency and free speech communities, both rooted in a passion for freedom, transparency, and decentralization.

Following the announcement, Rumble's shares experienced a significant surge of 81% after the market closed on Dec 23, reflecting investor optimism about the platform's future prospects.

Established in 2013, Rumble aims to provide creators with better monetization opportunities and fewer restrictions on content. Although it has a smaller user base which is around 50 million monthly active users.

It attracts creators who prioritize free speech and seek an alternative to YouTube's more stringent policies. Rumble's growth is notable among those who feel constrained by traditional platforms.