According to Reuters, the video sharing platform and cloud service Rumble announced on Friday that it has signed a strategic investment agreement worth 775 million USD from Tether, a well-known blockchain platform. This event led to a significant increase of 43.7% in Rumble's stock price in Toronto during subsequent trading.
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According to information from Rumble, after the transaction is completed, Chris Pavlovski, the chairman and CEO of the company, will still retain control. Although Tether will hold a small portion of Rumble's common shares, they will not have the right to appoint any members to the company's board of directors.
Additionally, Rumble will use part of the funds from Tether to execute a self-repurchase offer of up to 70 million common shares. The investment, along with the share buyback, is expected to be completed in the first quarter of 2025.
This strategic investment not only provides new financial resources for Rumble but could also expand Tether's influence in the video technology and cloud storage sectors. This promises to create many opportunities for both Tether and Rumble in an evolving business environment, especially as the acceptance of altcoins continues to grow.
Source: Reuters.
