Tether Makes $775M Bet on Free-Speech Video Platform Rumble, Stock Surges 41%

Social Media Platform's Partnership with USDT Issuer Comes After Recent Bitcoin Mining Expansion

  • Tether commits $775 million investment in video platform Rumble, starting with $250 million in cash.
  • Deal structure includes acquisition of 103.3 million shares of Rumble common stock at $7.50 per share.
  • Rumble’s stock (RUM) surged 40.75% in after-hours trading to $10.57.
  • Investment aims to strengthen decentralized media platforms and free expression.
  • Rumble plans separate $20 million Bitcoin reserve investment as part of treasury strategy.

Stablecoin giant Tether has announced a $775 million investment in video streaming platform Rumble, marking a significant move into decentralized media infrastructure. The deal represents one of the largest investments by a cryptocurrency company into traditional media platforms.

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Strategic Investment Structure

The investment package includes:

  • Initial $250 million cash investment
  • Acquisition of 103.3 million Rumble common stock shares
  • Price set at $7.50 per share
  • Expected completion in early 2025

USDT, Tether’s dollar-pegged stablecoin, maintains its position as the largest stablecoin by market capitalization. The company’s move into media signals a diversification strategy beyond cryptocurrency markets.

Market Impact and Platform Growth

The announcement sparked immediate market reaction, with Rumble’s stock climbing 40.75% in after-hours trading. According to MarketWatch data, the share price reached $10.57, indicating strong investor confidence in the partnership.

Rumble, established in 2013 by Chris Pavlovski, positions itself as an alternative to mainstream video platforms. The platform’s recent initiatives include:

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  • Creation of a $20 million Bitcoin reserve
  • Development of crypto payment solutions
  • Integration of cloud services

Paolo Ardoino, Tether CEO, stated: “Tether’s investment in Rumble reflects our shared values of decentralization, independence, transparency, and the fundamental right to free expression.”

The platform’s Bitcoin strategy aligns with other public companies like MicroStrategy and Tesla, which have added Bitcoin to their corporate treasuries.

Rumble CEO Pavlovski emphasized: “We believe that the world is still in the early stages of the adoption of Bitcoin, which has recently accelerated with the election of a crypto-friendly U.S. presidential administration and increased institutional adoption.”

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