Tether, the company behind the USDT stablecoin, just made a big announcement. They’re investing $775 million in Rumble, a streaming platform that promotes free speech and positions itself as an alternative to YouTube.
This investment is described as a “definitive agreement.” It kicks off with an initial cash investment of $250 million.
What’s interesting is that Tether will eventually acquire 103.3 million shares of Rumble's common stock. Rumble's CEO, Chris Pavlovski, will still hold a controlling stake in the company. At a share price of $7.50, Tether's investment is expected to close in early 2025.
After the announcement, Rumble's stock (RUM) jumped 40.75% in after-hours trading. Its current price stands at $10.57, according to MarketWatch.
Rumble was launched in 2013 by Chris Pavlovski. The platform has become a popular choice for conservative and far-right content creators looking for alternatives to mainstream platforms.
Tether's CEO, Paolo Ardoino, commented, “Tether’s investment in Rumble reflects our shared values of decentralization, independence, transparency, and the fundamental right to free expression.” He believes that platforms like Rumble can provide a credible and uncensored alternative in a world where trust in traditional media is declining.
Both Tether and Rumble haven’t responded yet to inquiries from Decrypt.
Pavlovski expressed his enthusiasm, saying, “I truly believe Tether is the perfect partner that can give Rumble a significant boost as we prepare for our next phase of growth.”
In November, Rumble’s Board of Directors approved creating a Bitcoin reserve as BTC prices approached $100,000. They plan to invest up to $20 million in Bitcoin, joining companies like MicroStrategy and Tesla in adding Bitcoin to their balance sheets.
Pavlovski stated, “We believe that the world is still in the early stages of Bitcoin adoption, which has accelerated with the election of a crypto-friendly U.S. administration and increased institutional interest.” He highlighted Bitcoin's unique position as it isn't subject to inflation like government-issued currencies.
In other news, Japanese investment firm Metaplanet announced plans to raise $61 million to buy more Bitcoin. They’re using a strategy similar to MicroStrategy’s, despite some pushback from shareholders. They plan to issue 5 billion yen (about $31.9 million) in bonds to fund their Bitcoin purchases.
On the college sports front, top football prospect Matai Tagoa’i will receive part of his compensation in Bitcoin through a deal with the University of Southern California (USC). This puts him in the company of athletes like Russell Okung and Odell Beckham Jr. While the exact details are unclear, some college players have received payouts estimated at up to $4 million.
Lastly, Formula 1 has renewed its partnership with Crypto.com through 2030. This agreement allows Crypto.com to maintain a strong presence at major Formula 1 events, including the Miami Grand Prix, where it has been the title sponsor since 2022. This partnership marks Formula 1's entry into the crypto space during a time of significant growth for digital assets.