Introduction
Tether has announced a $775 million strategic investment in Rumble. Rumble is an alternative to YouTube and hosts 67 million monthly active users. With Tether’s backing the platform aims to expand its services, drive growth initiatives and offer a free expression environment. This move arrives as Rumble continues to attract attention from crypto-focused audiences and investors.
Source: KuCoin
Quick Takes
- Tether invests $775 million in Rumble. Rumble shares surged 44.6% in after-hours trading.
- Tether earned $2.5 billion net profit in Q3 2024.
- Rumble will use $250 million of Tether’s funding for growth.
What is Tether (USDT)?
USDT or Tether (USDT) is a decentralized stablecoin whose value is pegged to the US dollar at 1:1. It is the most widely accepted stablecoin in the world, enjoying the largest market cap and liquidity in its category. Tether, the company that issues and manages the USDT stablecoin, maintains its peg to the USD with matching fiat currency and company reserves.
You can use Tether's USDT to send and receive digital payments via blockchain technology, as a base currency to trade cryptocurrencies on centralized exchanges (CEXs) like KuCoin and decentralized exchanges (DEXs), and even to earn passive income via staking and lending on exchanges and DeFi platforms.
The USDT token was originally launched as an ERC-20 token on the Ethereum blockchain in 2014 and was initially known as Realcoin. Since then, it has expanded to run on other leading blockchain networks such as TRON, Algorand, Solana, Avalanche, and Polygon.
Tether’s $775M Investment in Rumble
Source: X
Tether the world’s largest stablecoin issuer will purchase 103,333,333 shares of Rumble Class A Common Stock for $7.50 per share This will total $775 million in gross proceeds for Rumble $250 million will support new growth initiatives The remaining amount will fund a self-tender offer for up to 70 million shares of Class A stock.
Paolo Ardoino, CEO of Tether said “Tether’s investment in Rumble reflects our shared values of decentralization, independence, transparency and the fundamental right to free expression. In today’s world legacy media has increasingly eroded trust creating an opportunity for platforms like Rumble to offer a credible uncensored alternative. This collaboration aligns with our long-standing commitment to empowering technologies that promote freedom and challenge centralized systems as demonstrated through our recent collaborations and initiatives. Rumble’s dedication to fostering open communication and innovation makes them an ideal ally as we continue building the infrastructure for a more decentralized inclusive future. Lastly beyond our initial shareholder stake Tether intends to drive towards a meaningful advertising cloud and crypto payment solutions relationship with Rumble.”
Rumble’s Share Rally Up 44.6% After Tether’s Announcements and Financials
Shares of Rumble fell 1% at the market close on Friday, December 20, 2024 but surged 44.6% in after-hours trading once news of Tether’s investment broke The platform posted $25.1 million in Q3 2024 revenue which is a 39% increase year over year with a net loss of $31.5 million Rumble is well-known for its hosting of conservative content including Truth Social It also attracted notable investors like Peter Thiel Vivek Ramaswamy and JD Vance back in 2021 at a $500 million valuation
Tether and Rumble’s Shared Vision of Freedom and Crypto Growth
Chris Pavlovski Rumble chairman and CEO will maintain his controlling stake and said “Many people may not realize the incredibly strong connection between the cryptocurrency and free speech communities which is rooted in a passion for freedom, transparency and decentralization.” He described the Tether deal as “an immediate liquidity event for all of our stockholders.”
Tether continues to diversify its portfolio as it reported $2.5 billion in net profit in Q3 2024 from yields on USDT’s backing assets Tether has expanded into AI Bitcoin mining and decentralized messaging in recent months
Conclusion
Tether’s bold investment signals a broader crypto push into the media sector and highlights the intersection of digital assets with free speech platforms Rumble’s surge in share value underscores investor excitement about this new collaboration Both parties share a commitment to decentralized technology and free expression This partnership may also pave the way for expanded crypto integrations in media advertising and payment solutions as Tether and Rumble seek to shape a more open inclusive digital future.
