YouTube competitor Rumble (RUM) has closed a deal for a $775 million strategic investment from stablecoin giant Tether.
Rumble will use $250 million of the funds to support operations and the remainder to fund a tender offer for up to 70 million shares of its common stock at a price of $7.50, according to a news release Friday evening. $7.50 is the same share price that Tether pays for its stake.
“I truly believe Tether is the perfect partner who can put a rocket pack on Rumble’s back as we prepare for our next phase of growth,” said Chris Pavlovsky, CEO of Rumble.
“Legacy media has increasingly eroded trust, creating an opportunity for platforms like Rumble to offer a trusted, uncensored alternative,” said Paolo Ardoino, CEO of Tether. “Alongside our initial shareholder stake, Tether intends to move toward a meaningful ad, cloud and cryptocurrency payment solutions relationship with Rumble.”
RUM shares rose 41% after hours to $10.13.
It is unknown whether any of the proceeds will be used to put Bitcoin (BTC) on Rumble’s balance sheet. Pavlovsky in November has aroused interest In his company maybe buy bitcoin.
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