Tether invests $775 million in video platform Rumble

In a strategic move that shook the technology and cryptocurrency market, Tether, the issuer of the stablecoin USDT, announced a massive investment of US$775 million in Rumble, a video sharing platform that presents itself as an alternative to YouTube, agreement with information published by Coindesk.

The deal, announced last Friday, injects fresh capital into Rumble and signals a strong commitment to the platform’s expansion. According to the publication, of the total investment, US$250 million will be allocated to support Rumble’s operations, ensuring the continuity and improvement of the services offered. The majority of the investment, however, will be used to finance a public offering to acquire up to 70 million common shares of the company, at a price of US$7,50 per share – the same amount paid by Tether for its stake.

The partnership between the two companies has been met with enthusiasm by executives. Chris Pavlovski, CEO of Rumble, expressed his belief that Tether is the ideal partner to drive the platform’s growth. He highlighted the importance of the investment for Rumble’s next phase of expansion, aiming to consolidate its position in the online video market.

“I truly believe that Tether is the perfect partner that can put a rocket on Rumble’s back as we prepare for our next phase of growth,” said Pavlovski.

Tether CEO Paolo Ardoino echoed Pavlovski’s views, emphasizing the growing distrust of traditional media and the opportunity this presents for platforms like Rumble that offer a trustworthy and uncensored alternative. Ardoino also revealed that in addition to the equity stake, Tether intends to establish a comprehensive partnership with Rumble, spanning advertising, cloud solutions, and cryptocurrency payments. This integration of services could bring new functionality and experiences to the platform’s users.

“Legacy media has increasingly eroded trust, creating an opportunity for platforms like Rumble to offer a trusted, uncensored alternative,” Ardoino said. “In addition to our initial equity stake, Tether intends to drive a meaningful advertising, cloud, and crypto payment solutions relationship with Rumble.”

The announcement of the investment had an immediate impact on the stock market. Rumble (RUM) shares surged 41% after the close of trading to $10,13. This significant increase demonstrates investor confidence in the potential of the partnership between Rumble and Tether.