Key Points
- Tether, the largest stablecoin provider, is investing $775 million in video-sharing platform Rumble, with $250 million earmarked for growth initiatives and the remainder funding a share buyback program at $7.50 per share.
- The partnership aims to unite two major players in the decentralization space, with plans to develop advertising, cloud services, and crypto payment solutions while maintaining Rumble CEO Chris Pavlovski’s controlling stake.
Strategic Alliance Focuses on Decentralization and Free Speech
In a groundbreaking move announced on December 20, 2024, Tether, the company behind the world’s most widely used stablecoin USDT, is making a significant $775 million investment in video-sharing platform Rumble. Tether CEO Paolo Ardoino emphasized the company’s commitment to “freedom of speech and financial freedom,” stating on X that the investment underscores Tether’s focus on “supporting technology and companies that empower humans.”
Deal Structure Balances Growth and Shareholder Value
The strategic investment is structured with a dual focus: $250 million will be directed toward Rumble’s growth initiatives, while the remaining funds will support a self tender offer for up to 70 million shares of Class A Common Stock at $7.50 per share. This structure allows current shareholders to maintain liquidity while ensuring the platform has substantial capital for expansion.
Vision for Technology-Driven Independence
Ardoino’s public statements reveal a deeper strategic alignment between the two companies. In his X post, he expressed admiration for what Rumble’s CEO Chris Pavlovski and his team have built, emphasizing their shared vision of “delivering independence and resilience to our society.” The partnership extends beyond the initial investment, with plans to develop comprehensive advertising, cloud services, and crypto payment solutions.
The transaction, expected to close in the first quarter of 2025, represents a significant convergence of cryptocurrency and content platforms. Both companies maintain that the deal will preserve Rumble’s existing governance structure, with Pavlovski retaining his super-majority voting control while Tether takes a minority position without board representation rights.
