Investing.com -- Shares of Rumble (NASDAQ:RUM) surged over 46% in pre-open trade on Monday following a $775 million investment from Tether, the digital assets company behind the widely used USDT stablecoin.
This deal, which underscores a growing partnership between the worlds of cryptocurrency and free speech, is expected to accelerate Rumble’s growth and provide liquidity for its stockholders.
According to a statement from Rumble’s CEO, Chris Pavlovski, the collaboration with Tether is particularly exciting due to the shared values of decentralization, transparency, and the fundamental right to free expression.
Pavlovski said that the strong connection between the cryptocurrency community and free speech advocates, pointing to a shared commitment to freedom and the fight against centralized systems.
The investment also strengthens Rumble ’s financial position, with $250 million of the funds earmarked to support the company’s growth initiatives, including expanding its video-sharing platform and cloud services.
In addition to the direct investment, the deal includes a self-tender offer, which will allow stockholders to sell up to 70 million shares of Rumble’s Class A Common Stock at $7.50 per share, the same price as Tether’s investment.
This provides a rare liquidity event for Rumble’s investors. Pavlovski noted that the deal would not only provide immediate financial backing but also position Rumble to continue its expansion.
He expressed confidence that the partnership with Tether would act as a "rocket pack" for the company as it enters its next phase of growth.
The investment is also seen as a move for Tether, which is looking to strengthen its influence in the media and technology sectors.
Tether’s CEO Paolo Ardoino flagged how the partnership aligns with Tether’s broader mission to empower decentralized technologies and offer uncensored alternatives to traditional media.
Tether plans to continue expanding its relationship with Rumble, potentially exploring advertising, cloud services, and cryptocurrency payment solutions in the future.
The transaction, which is set to close in the first quarter of 2025, will result in Tether becoming a minority shareholder in Rumble.
However, despite the investment, Rumble’s governance structure, including Pavlovski’s super-majority voting control, will remain unchanged. The agreement is subject to customary closing conditions, including regulatory approvals.