YouTube competitor Rumble (RUM) has signed a deal to receive a $775 million strategic investment from stablecoin giant Tether.
Rumble will use $250 million of the funds to support its operations, with the remainder to fund a tender offer for up to 70 million shares of common stock at a price of $7.50, according to a Friday night press release. This $7.50 is the same price per share that Tether is paying for its shares.
“We truly believe Tether is the perfect partner to strongly support Rumble as we prepare for our next phase of growth,” said Rumble CEO Chris Pavlovski.
“Legacy media is becoming increasingly discredited, creating an opportunity for platforms like Rumble to provide trusted, uncensored media alternatives,” said Paolo Ardoino, CEO of Tether. ” he said. “Beyond the initial shareholder investment, Tether intends to pursue a meaningful advertising, cloud and crypto payment solutions relationship with Rumble.”
RUM stock soared 41% in after-hours trading to $10.13.
It is unclear whether a portion of the proceeds will be used to put Bitcoin (BTC) on Rumble's balance sheet. Pavlovsky hinted in November that his company might be interested in purchasing Bitcoin.
