In a significant move within the digital media landscape, Tether, the leading issuer of the USDT stablecoin, has announced a strategic investment of $775 million in Rumble, a Canadian video-sharing and cloud storage platform. This investment aims to bolster the growth of decentralized media platforms and provide an alternative to traditional content-sharing services like YouTube.
The deal, revealed on December 20, 2024, includes an initial allocation of $250 million to support Rumble’s expansion initiatives. The remaining funds will facilitate a self-tender offer for up to 70 million shares of Rumble’s Class A Common Stock at a price of $7.50 per share, the same rate as Tether’s investment. This approach is designed to enhance liquidity for current shareholders while allowing Rumble to strengthen its financial position.
Chris Pavlovski, Rumble’s CEO and Chairman, expressed enthusiasm about the partnership, emphasizing the alignment between the values of both companies. He stated that Tether is “the perfect partner” to accelerate Rumble’s growth trajectory. Despite Tether’s substantial financial backing, Pavlovski will retain his controlling stake in the company, ensuring that Rumble’s governance remains unchanged.
Following the announcement, Rumble’s stock experienced a remarkable surge, climbing over 40% in after-hours trading. This reflects investor optimism regarding the potential of this partnership to disrupt the existing media landscape dominated by larger platforms.
Tether’s CEO, Paolo Ardoino, highlighted that this investment is part of a broader strategy to promote decentralization and transparency in technology. He noted that as traditional media increasingly loses credibility, there is a growing opportunity for platforms like Rumble to provide uncensored alternatives that uphold free expression.
The transaction is expected to close in the first quarter of 2025, pending regulatory approvals. This investment not only marks Tether’s commitment to diversifying its portfolio but also reinforces its mission to support innovative technologies that challenge centralized systems and promote freedom in digital communication.