Rumble, the high-growth video-sharing platform and independent cloud services provider, announced a $775 million investment from Tether on 20 December 2024.
This partnership aims to unites two decentralization leaders to accelerate innovation, empower free expression, and fuel financial inclusion, according to Tether’s press release.
Commenting on the investment, 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.”
If you haven’t heard of Rumble (RUM), the no-censorship video platform, now’s the time to take notice. Tether recently took a significant stake, and the stock is climbing in after-hours trading. Let’s just say, I’m feeling good about loading up during last week’s dip. Thanks to… pic.twitter.com/LiCSnnoQPs
— Reasoned Chaos (@ReasonedChaos) December 21, 2024
Terms Of Agreement Between Rumble And Tether
Under the terms of the agreement, Tether will acquire 103,333,333 shares of Rumble’s Class A Common Stock at $7.50 per share.
The investment will generate $775 million in gross proceeds for Rumble, of which $250 million will be allocated to strengthening the company’s balance sheet and funding strategic initiatives.
The remaining proceeds will finance a self-tender offer for up to 70 million shares of Rumble’s Class A Common Stock, ensuring liquidity for interested shareholders at the same favorable price as Tether’s investment.
Chris Pavlovski, Rumble’s Chairman and CEO, expressed his enthusiasm for the milestone collaboration. “This partnership with Tether represents a pivotal moment for Rumble,” he said. “It underscores the deep alignment between the cryptocurrency and free-speech communities—both of which share a passion for decentralization, transparency, and individual empowerment.”
“This investment not only validates Rumble’s mission but also provides the fuel necessary to accelerate our next phase of growth,” Pavlovski added. “With this capital injection, Pavlovski will retain his super-majority voting control, safeguarding Rumble’s independent vision and leadership.”
Ardoino: Legacy Media Has Increasingly Eroded Trust
“In today’s world, legacy media has increasingly eroded trust, creating an opportunity for platforms like Rumble to offer a credible, uncensored alternative,” said Ardoino. “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.”
According to Tether, platforms like Rumble are integral to countering the erosion of trust in legacy media.
“By investing in Rumble, we not only align with a company that shares our values but also create new possibilities for innovation in advertising, cloud services, and cryptocurrency payment solutions,” said Tether.
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