Rumble secures $775 million from Tether to fuel growth, with investments in free speech, innovation, and crypto payment solutions.
Rumble, a video-sharing platform, has entered into a strategic partnership with Tether, the largest company in the digital assets industry. Rumble will receive an investment of $775 million from Tether, though the majority of the funds will be earmarked for Rumble’s growth. $USDT stablecoin is hugely popular among over 350 million users across the globe, with Tether being widely known for its product. Rumble announced the partnership through its official X account.
Rumble will allocate $250 million of the funds for growing initiatives, according to the press release. Rumble will use the rest of the investment to conduct a self-tender offer, whereby Rumble will purchase up to 70 million shares of its class A common stock. Tether will pay $7.50 per share for the buyback, the same as their investment. Chris Pavlovski, Rumble’s CEO, will hold on to his controlling stake in the company following the transaction.
Tether and Rumble Partnership Set to Drive Innovation and Growth
Chris Pavlovski was excited about the deal with Tether. He maintained that cryptocurrency and the free speech communities have a strong link between them, and both have the same values like decentralization, transparency, and freedom. Rumble also received the $250 million cash infusion, which will, he noted, go a long way to fuel its growth. Further, the self-tender offer will provide liquidity to stockholders participating. “This partnership will be instrumental for Rumble’s growth in the next phase,” says Pavlovski.
Tether CEO Paolo Ardoino also shared his thoughts on this collaboration. However, he adds that Tether’s investment represents support of decentralization, transparency, and freedom of speech. Ardoino says Rumble provides an alternative to weakening trust in mainstream media. Rumble will also support advertising, cloud, and crypto payment solutions, according to him.
Tether also recently diversified its investments in another move. It invested $100 million into Argentine agriculture conglomerate Adecoagro in September. Specifically, this adds to Tether’s growing portfolio outside of the blockchain sector.
Overall, the Rumble and Tether partnership shows promise for both companies and represents an exciting future. This collaboration is expected to drive innovation and provide new opportunities.
