Summary:
Tether invests $775 million in Rumble, a rising streaming platform.
Investment begins with $250 million in cash and will acquire 103.3 million shares.
Rumble's stock rose 40.75% after the announcement.
Rumble adopts a Bitcoin reserve strategy, planning to buy up to $20 million in Bitcoin.
Tether and Rumble share values of decentralization and free expression.
Tether, the issuer of the USDT stablecoin, has made headlines with its $775 million investment in the streaming platform Rumble, known for its anti-censorship stance against traditional media. This strategic move is set to significantly boost Rumble's operations and its adoption of a Bitcoin reserve strategy.
Investment Details
Tether's investment will start with an initial cash outlay of $250 million, making it a definitive agreement. In return, Tether will acquire 103.3 million shares of Rumble common stock, priced at $7.50 per share. The deal is expected to close by early 2025. Following the announcement, Rumble's stock surged by 40.75%, reflecting strong market interest.
Rumble's Vision
Founded in 2013 by Chris Pavlovski, Rumble has quickly become a favored platform for creators who prioritize free speech and have faced censorship on mainstream platforms like YouTube. Tether’s CEO, Paolo Ardoino, emphasized that the investment aligns with their shared values of decentralization and transparency.
Future Collaborations
Beyond the initial investment, Tether aims to explore opportunities in advertising, cloud services, and crypto payment solutions with Rumble, indicating a deepening partnership.
Rumble's Bitcoin Strategy
In a significant pivot, Rumble's Board recently approved a Bitcoin reserve strategy, planning to acquire up to $20 million in Bitcoin. This move positions Rumble alongside other major companies, such as MicroStrategy and Tesla, in recognizing Bitcoin as a hedge against inflation and a viable treasury asset.
Pavlovski remarked on the growing adoption of Bitcoin, spurred by a crypto-friendly U.S. administration and increasing institutional interest, asserting that Bitcoin's limited supply makes it a valuable asset compared to fiat currencies.
Edited by Andrew Hayward
Comments