The issuer of the stablecoin Tether has committed $775 million to the growing video streaming platform Rumble, which has adopted a Bitcoin reserve strategy.
The stablecoin issuer Tether announced on Friday that it is investing $775 million in the video streaming platform Rumble, a rival to YouTube that bills itself as an anti-censorship platform.
The company behind the stablecoin USDT called the agreement a "definitive agreement," and it would begin with an initial cash investment of $250 million.
The agreement, Tether said, will allow the cryptocurrency company to finally receive 103.3 million shares of Rumble. Rumble's CEO, Chris Pavolski, will maintain a majority stake in the streaming platform. At $7.50 per ordinary share, Tether's $775 million investment in Rumble is expected to close in early 2025.
Following the announcement, Rumble's RUM shares rose 40.75% in after-hours trading and are currently priced at $10.57, according to MarketWatch.
Launched in 2013 by tech entrepreneur Chris Pavlovski, Rumble is a video streaming platform focused on free speech. It has become a popular alternative to YouTube for conservative and far-right content creators.
"Tether's investment in Rumble reflects our shared values of decentralization, independence, transparency, and the fundamental right to free expression," said Tether CEO Paolo Ardoino in a statement. "In today's world, legacy media has increasingly eroded trust, creating an opportunity for platforms like Rumble to offer a credible and uncensored alternative."
"I truly believe that Tether is the perfect partner that can put a rocket package on Rumble's back as we prepare for our next phase of growth," said Rumble's President and CEO Chris Pavlovski in a statement.