Rumble (RUM), a video sharing platform that competes with YouTube, has announced a strategic investment of $775 million from stablecoin giant Tether. According to a press release on Friday evening, Rumble plans to use $250 million of the investment to support its operations and the remaining amount to fund a tender offer for up to 70 million shares of its common stock at a price of $7.50 per share. This is the same price per share that Tether is paying for its stake in Rumble.
Rumble CEO Chris Pavlovski expressed his excitement about the partnership, stating, “I truly believe Tether is the perfect partner that can accelerate Rumble’s growth as we enter our next phase.” He also hinted at the possibility of using some of the funds to invest in bitcoin, as he had previously mentioned in November.
Tether CEO Paolo Ardoino also shared his thoughts on the partnership, saying, “Legacy media has lost the trust of the public, creating an opportunity for platforms like Rumble to offer a credible and uncensored alternative.” He also mentioned Tether’s plans to explore potential collaborations with Rumble in areas such as advertising, cloud services, and crypto payment solutions.
Following the announcement, RUM shares saw a significant increase of 41% in after-hours trading, reaching $10.13.
It is unclear at this time if Rumble will use any of the funds to invest in bitcoin and add it to their balance sheet. However, with Tether’s involvement, it is possible that Rumble may explore the use of cryptocurrencies in their operations. This partnership could also potentially boost Rumble’s growth and help it establish itself as a strong competitor to YouTube.
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