The deal allocates US$250 million for Rumble’s operations, with the remaining funds designated for a tender offer of up to 70 million shares at US$7.50 per share — matching Tether’s purchase price.
Following the announcement, the YouTube competitor’s stock (RUM) surged 41% in after-hours trading to US$10.13.
Tether CEO Paolo Ardoino said the company plans to develop advertising, cloud services, and crypto payment solutions with Rumble.
“Legacy media has increasingly eroded trust, creating an opportunity for platforms like Rumble to offer a credible, uncensored alternative,” said Ardoino.
Rumble CEO Chris Pavlovski expressed enthusiasm about the partnership.
“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,” he said.
While Rumble CEO Pavlovski had previously expressed interest in Bitcoin purchases in November, the announcement did not specify if any proceeds would be used to add Bitcoin to the company’s balance sheet.
This investment could significantly impact both the digital content and crypto sectors, potentially accelerating the integration of cryptocurrency payments into mainstream video platforms.
