YouTube competitor Rumble (RUM) has just secured a massive $775 million strategic investment from stablecoin giant Tether, marking a significant milestone for the up-and-coming video platform.
According to a recent press release, Rumble plans to allocate $250 million from the investment to support its operations, with the remaining funds earmarked for a tender offer to purchase up to 70 million shares of its common stock at a price of $7.50 per share. This same price per share is what Tether paid to acquire its stake in the company.
Rumble CEO Chris Pavlovski expressed his excitement about the partnership, stating, “I truly believe Tether is the perfect partner that can put a rocket pack on the back of Rumble as we prepare for our next phase of growth.” This sentiment was echoed by Tether CEO Paolo Ardoino, who highlighted the opportunity for platforms like Rumble to provide a credible, uncensored alternative in an era where trust in legacy media is diminishing.
As a result of the deal, RUM shares surged by 41% in after-hours trading, reaching $10.13. While it remains unclear whether any of the proceeds will be used to add bitcoin (BTC) to Rumble’s balance sheet, Pavlovski had previously hinted at the possibility of the company exploring investments in the cryptocurrency.
Looking ahead, Tether has expressed its intention to further collaborate with Rumble on advertising, cloud services, and crypto payment solutions, signaling a promising future for the partnership. This strategic investment not only bolsters Rumble’s financial position but also positions the platform for accelerated growth and expansion in the competitive online video market.
With this significant injection of capital and support from Tether, Rumble is well-positioned to solidify its position as a leading alternative to traditional media platforms and continue to attract users seeking a more transparent and unbiased content experience.