Rumble's stock soared 51.6% after Tether's strategic investment.
Rumble commits $20M for Bitcoin, following a 93.9% community vote.
Tether and Rumble explore joint ventures in cloud and crypto payments.
Tether, the leading stablecoin issuer, has invested a strategic $775m in Rumble, a self-described ‘free speech-centric’ video-sharing platform. The stake revealed on December 20 includes $250 million in cash and the right to purchase an additional 70 million at $7.50 each.
Rumble, founded by Pavlovski, still operates autonomously with Pavlovski continuing to own more than 50 percent stake in the company. According to Tether’s CEO, Paolo Ardoino, the partnership was built based on values in decentralization and transparency. He emphasized the significance of Rumble’s potential to challenge established media players and foster user trust in digital platforms.
The collaboration aims to strengthen Rumble’s market position against YouTube, which has 2.5 billion monthly users as of March 2024. Ardoino highlighted Tether’s goal of growing technologies that promote individual empowerment and societal resilience.
Broader Goals and Future Collaboration
Apart from funding, Tether and Rumble aim to find more collaboration directions in cloud services, advertising, and cryptocurrency payments. Pavlovski remained positive about Rumble and its capability to compete with marketers worldwide, noting the platform’s readiness to challenge YouTube’s dominance.
https://twitter.com/chrispavlovski/status/1870256944788975691
Rumble has also embraced the use of cryptocurrencies in its operations. In November, the company decided to spend up to $20 million from its reserve for the Bitcoin purchase, supported by 93.9% of respondents in a community poll. This decision aligns with Rumble’s plan to adopt blockchain technology and target the crypto market.
This news excited Rumble investors; it steered the stock up 51.60% in after-hours trading, to $10.90 per share after Tether’s investment was announced.
Tether Expands Investment Portfolio Amid Regulatory Challenges
Tether invested in Rumble as part of its diversification plan for 2024, which includes ventures into artificial intelligence, education, and Bitcoin mining. This year, its operating profit was over $10 billion, allowing it to reinvest in strengthening its market leadership.
Tether has more than its Rumble partnership: it intends to release an AI platform by early 2025 to complement its focus on emerging economies. This campaign is another step in developing Tether’s technology and expanding its business.
Tether has been under fire during these developments for allegations of USDT’s involvement in illicit activities. However, the company strengthened its position in the market by creating more partnerships and investment diversification; moreover, it still led the stablecoins market with a $140 billion capitalization.
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