In an assertive move that underscores the growing interest in alternative digital and media landscapes, Tether, the entity behind the prominent USDT stablecoin, has declared a significant investment in Rumble. Rumble, a streaming service that prides itself on providing a platform unfettered by the constraints of traditional censorship, has emerged as a noteworthy competitor to YouTube, advocating vigorously for free expression. This partnership was solidified through what has been described as a “definitive agreement,” involving an initial investment tranche of $250 million in cash by Tether.
Rumble is set to benefit from a total investment of $775 million, a move that will see Tether acquiring 103.3 million shares of Rumble’s common stock. Despite this substantial financial infusion, Rumble’s leadership structure will remain largely unchanged, with CEO Chris Pavolski maintaining a majority control over the company. This arrangement values the shares at $7.50 each, with the transaction anticipated to be finalized by early 2025.
The announcement had an immediate and robust impact on Rumble’s market presence, with its stock (RUM) surging by 40.75% in after-hours trading, an ascent that saw its price reach $10.57, as reported by MarketWatch. Since its inception in 2013 by tech entrepreneur Chris Pavlovski, Rumble has increasingly become a haven for content creators with conservative and far-right viewpoints, positioning itself as a bastion of free speech in a digital era frequently critiqued for its restrictive content moderation policies.
Tether’s CEO, Paolo Ardoino, remarked on the investment, highlighting the shared ethos between Tether and Rumble concerning decentralization, transparency, and the imperative of free expression. Ardoino took the opportunity to critique legacy media outlets, positing Rumble as a veritable alternative capable of restoring trust through its commitment to uncensored content delivery.
Though requests for further comments from both Tether and Rumble went unanswered, the strategic implications of Tether’s investment are clear. Beyond just a mere financial stake, Tether envisions leveraging this partnership to foster a comprehensive relationship with Rumble centered around advertising, cloud solutions, and crypto payment integrations. This echoes sentiments shared by Rumble’s chairman and CEO, Chris Pavlovski, who views Tether’s involvement as a catalyst poised to accelerate Rumble’s growth trajectory significantly.
Additionally, in a move emblematic of the broader corporate trend towards digital currency adoption, Rumble announced its intention to establish a Bitcoin reserve. Inspired by Bitcoin’s price rally toward $100,000, the company plans to allocate up to $20 million towards purchasing Bitcoin. This decision places Rumble alongside other publicly traded companies like MicroStrategy, Marathon Digital Holdings, and Tesla, which have similarly embraced Bitcoin as a valuable component of their treasury strategies. Such decisions underscore a growing consensus on Bitcoin’s role as an effective hedge against inflation, distinct from the vulnerabilities associated with government-issued currencies prone to devaluation through extensive money printing.