Investment in Rumble by Tether

The cryptocurrency stablecoin company Tether has announced a significant investment of $775 million in Rumble, a video-sharing platform and cloud service provider that has gained popularity among conservative content creators and positions itself as a free speech alternative to mainstream competitors.

Details of the Investment

The agreement was revealed on Friday evening, with Rumble set to receive $250 million directly from the investment. The remaining funds will be allocated to a self-tender offer for up to 70 million shares of its Class A Common Stock, priced at $7.50 per share, which matches Tether’s investment valuation.

Rumble’s Position in the Market

Rumble competes with YouTube, hosting a variety of conservative commentators such as Dan Bongino, Steven Crowder, and Andrew Tate, as well as journalist Glenn Greenwald and gamer Dr. Disrespect, along with Dana White’s Power Slap competitions.

Shareholder Insights

Among Rumble’s shareholders are Bongino and a venture capital firm co-founded by Vice president-elect JD Vance, who has disclosed a personal investment in Rumble valued between $100,000 and $250,000.

Leadership and Stakeholding

Following the investment, Rumble’s chairman and CEO Chris Pavlovski will maintain a majority stake in the company, although he plans to sell up to 10 million shares in the tender offer.

Tether’s Market Presence

Tether has established itself as one of the leading stablecoins in the cryptocurrency market, boasting over 350 million users.

Statements from Leadership

Chris Pavlovski expressed enthusiasm about the partnership, highlighting the strong ties between the cryptocurrency and free speech communities, which share values of freedom, transparency, and decentralization. He noted that the $250 million cash infusion would bolster Rumble’s growth initiatives and provide liquidity for shareholders participating in the tender offer.

Paolo Ardoino, CEO of Tether, emphasized that the investment reflects their mutual commitment to decentralization, independence, and free expression. He pointed out that as traditional media loses credibility, platforms like Rumble can offer credible, uncensored alternatives. Ardoino stated that Tether aims to foster a meaningful partnership with Rumble that extends beyond initial investment, focusing on advertising, cloud services, and crypto payment solutions.

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Person: Tether, Dan Bongino, Steven Crowder, Andrew Tate, Glenn Greenwald, Dr. Disrespect, Dana White, JD Vance, Chris Pavlovski, Paolo Ardoino
Company Names: Rumble, Tether
Titles: Power Slap

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