Video-sharing platform Rumble has announced a $775 million strategic investment from cryptocurrency firm Tether, marking a significant collaboration between the digital content and crypto sectors.
Tether has agreed to purchase approximately 103.3 million shares of Rumble at $7.50 per share, totaling $775 million. Rumble plans to allocate $250 million of this investment to support growth initiatives, with the remaining funds designated for a self-tender offer to repurchase up to 70 million shares of its Class A common stock at the same price.
Following the transaction, CEO Chris Pavlovski will retain his controlling stake in Rumble. Pavlovski has committed to tendering shares but does not intend to sell more than 10 million. The investment and tender offer are expected to close in the first quarter of 2025.
Rumble’s shares responded positively to the announcement, rising 41% to $10.17 in after-hours trading.
Tether, known for issuing the world’s largest stablecoin by market capitalization, has faced regulatory scrutiny in the past. Despite this, the company continues to expand its influence in the digital finance sector.
Rumble, positioning itself as a free-speech alternative to platforms like YouTube, has experienced growth in user engagement and revenue. In the third quarter, the company reported a 39% year-over-year increase in revenue, reaching $25.1 million, alongside a rise in monthly active users and narrowed losses.
This investment aligns with Rumble’s recent strategic decisions, including plans to add Bitcoin to its balance sheet, reflecting a deeper integration with the cryptocurrency ecosystem.
Follow Arabian Post
Select Arabian Post as your preferred source on Google and MSN News for trusted business news and Arab politics and updates.
