Limited Tether According to a Dec. 20 report, it is set to invest $775 million in video sharing platform Rumble as part of a strategic partnership aimed at bolstering its decentralization efforts. Press release.
The news sent Rumble shares soaring in after-hours trading, up 35.89% to $9.77, despite closing the regular session down 1.1% on the day at $7.19.
The transaction is expected to close in the first quarter of 2025, pending regulatory approval.
Pawlowski to maintain control
Under the agreement, Tether will purchase 103.3 million shares of Rumble's Class A stock. Despite the significant investment, Rumble CEO Chris Pawlowski will retain his supermajority voting rights and Tether will not be represented on the board.
Cantor Fitzgerald & Co. and Oppenheimer & Co. Rumble is advised by legal counsel Willkie Farr & Gallagher LLP. Tether is represented by McDermott Will & Emery LLP.
Rumble said it plans to use $250 million of the deal to strengthen its balance sheet and accelerate growth plans.
The remaining funds will fund a tender offer for up to 70 million shares of Rumble's Class A common stock at $7.50 per share – the same rate as Tether's investment. The move is expected to provide liquidity to shareholders who choose to participate in the offering.
Pawlowski highlighted the overlap between the crypto and free speech communities, describing the partnership as a natural fit. He added that the investment will help the platform drive its “next phase of growth.”
Tether CEO Paolo Arduino echoed that sentiment, citing Rumble as an alternative to mainstream media platforms. He added:
“This investment reflects our shared values of decentralization and transparency. We anticipate collaborating on advertising, cloud services and cryptocurrency payment solutions.”
Diversification efforts
Investing in Rumble is part of Tethers wider effort Diversify to better leverage your core stablecoin business Record profit and a huge treasury
In recent months, Tether has expanded into infrastructure projects, artificial intelligence, renewable energy, and peer-to-peer communication platforms. The company has launched initiatives to develop Bitcoin mining operations using sustainable energy sources and invest in artificial intelligence-based cyber security solutions.
In addition, Tether has explored blockchain-based payment networks and supports decentralized internet infrastructure to reduce censorship risks. These investments reflect Tether's strategy to build a resilient digital ecosystem that aligns with its mission to promote innovation, financial inclusion and decentralization.
