YouTube competitor Rumble (RUM) has announced a $775 million strategic investment from stablecoin giant Tether, with plans to use $250 million for operational support and the remaining funds for a tender offer to purchase up to 70 million shares of its common stock at $7.50 each. This price matches the amount paid by Tether for its stake in the company.
In a statement, Rumble CEO Chris Pavlovski expressed excitement about the partnership with Tether, believing it would help propel their growth. Similarly, Tether CEO Paolo Ardoino highlighted the need for alternative media platforms like Rumble due to the erosion of trust in legacy media. The companies also plan to explore opportunities for further collaboration in areas such as advertising, cloud services, and cryptocurrency payments.
Following the announcement, RUM’s stock price surged by 41% in after-hours trading to $10.13. However, it remains unclear whether any of the proceeds will be used to purchase bitcoin (BTC), as hinted by Pavlovski’s previous comments about potential cryptocurrency adoption by the company.
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