Tether, the issuer of the world’s largest stablecoin, USDT, has announced a $775 million investment into Rumble, a video-sharing platform and cloud services provider. This strategic move has sent Rumble stock soaring by 50% in aftermarket trading. The investment, valuing Rumble shares at $7.50 each, will boost the platform’s financial stability and growth prospects. Tether $775M Rumble Investment Sends Stock Soaring 50% Following a recent press release , Tether revealed its decision to acquire 103,333,333 shares of Rumble’s Class A Common Stock at $7.50 per share. The $775 million transaction marks a strategic move into decentralized communications. News of the investment triggered a sharp 50% increase in Rumble stock price during aftermarket trading, reflecting investor optimism about the collaboration. Rumble stock had been experiencing a downturn following Federal Reserve announcements on interest rates. However, the USDT issuer’s backing has restored market confidence, driving the share price upward. This highlights the growing ties between cryptocurrency initiatives and decentralized media platforms. Chris Pavlovski, Rumble’s CEO expressed enthusiasm stating, “This transaction provides an immediate liquidity event for all of our stockholders who elect to participate in the self tender offer. I truly believe Tether is the perfect partner that can put a rocket pack on the back of Rumble as we prepare for our next phase of growth.” These developments come just weeks after the video-sharing platform announced its intention to allocate up to $20 million of its treasury to Bitcoin. The decision reflects Rumble’s focus on diversifying its cash reserves and leveraging Bitcoin as a hedge against inflation. $250M Allocated For Growth, $525M For Share Buyback In addition, the USDT issuer has earmarked $250 million from the investment to boost Rumble’s growth initiatives. These funds will expand the platform’s operational capabilities and strengthen its financial foundation, enabling it to compete in the video-sharing and cloud services markets. The remaining $525 million will fund a self-tender offer for up to 70 million shares of Rumble’s Class A Common Stock. This buyback program, offered at the same $7.50 per share as Tether’s investment, provides liquidity for existing stockholders. Rumble’s CEO, Chris Pavlovski, will retain his controlling stake in the company, committing to tender no more than 10 million of his shares in the offer. Additionally, the partnership reflects shared values of decentralization and free speech. Tether’s CEO, Paolo Ardoino, emphasized the alignment between Tether’s mission to promote financial freedom and Rumble’s dedication to providing an alternative to traditional media. Meanwhile, the move comes as Tether diversifies its portfolio, leveraging profits from USDT’s backing assets, which generated $2.5 billion in net profit during Q3 2024. With this investment, the USDT issuer continues its expansion into sectors such as AI, decentralized messaging, and now, video-sharing platforms. Most recently, Paolo Ardoino revealed that Tether is targeting the end of Q1 2025 for the launch of its AI platform. While specific details remain limited, the platform is expected to integrate privacy-focused Peer-to-Peer AI Agents. The post Tether Invests $775M In Rumble Sparking Massive Stock Price Jump appeared first on CoinGape .
![How to Become a Millionaire in One Simple Step [Large Passive Income]](https://resources.cryptocompare.com/news/82/default.png "How to Become a Millionaire in One Simple Step [Large Passive Income]")
