Rumble's Shares Surge After Tether Investment

Shares of Rumble (NASDAQ:RUM) surged over 46% in pre-open trade on Monday after a $775 million investment from Tether, the digital assets company behind the widely used USDT stablecoin.

This deal highlights a growing partnership between the fields of cryptocurrency and free speech, expected to accelerate Rumble’s growth and provide liquidity to its stockholders.

According to a statement from Rumble’s CEO, Chris Pavlovski, the collaboration with Tether is exciting due to their shared values of decentralization, transparency, and the fundamental right to free expression. Pavlovski emphasized the strong links between the cryptocurrency community and free speech advocates, citing a shared commitment to freedom and opposition to centralized systems.

The investment enhances Rumble's financial position significantly, with $250 million allocated for company growth initiatives, including the expansion of its video-sharing platform and cloud services.

Additionally, the deal comprises a self-tender offer, allowing stockholders to sell up to 70 million shares of Rumble's Class A Common Stock at $7.50 per share, matching Tether’s investment price, creating a rare liquidity event for investors.

Pavlovski noted that this agreement would provide immediate financial support and position Rumble for continued expansion, expressing confidence that the partnership with Tether would serve as a "rocket pack" for the company’s next growth phase.

The investment also represents a strategic move for Tether, aiming to bolster its influence in the media and technology industries. Tether’s CEO, Paolo Ardoino, highlighted how the partnership aligns with Tether’s mission to empower decentralized technologies and offer uncensored alternatives to traditional media.

Tether plans to explore further collaboration with Rumble in the future, potentially involving advertising, cloud services, and cryptocurrency payment solutions.

The transaction is set to close in Q1 2025, resulting in Tether becoming a minority shareholder in Rumble. Despite this investment, Rumble's governance structure, including Pavlovski’s super-majority voting control, will remain unchanged, pending customary closing conditions, including regulatory approvals.