YouTube competitor Rumble (RUM) is in agreement for a $775 million strategic investment from stablecoin giant Tether.
Rumble will use $250 million of the money to support operations and the rest to fund a tender offer for up to 70 million shares of common stock priced at $7.50, according to a news release late Friday. That $7.50 is the same price per share that Tether is paying for its stake.
“I truly believe Tether is the perfect partner that can propel Rumble forward as we prepare for our next phase of growth,” said Rumble CEO Chris Pavlovski.
“Traditional media has increasingly eroded trust, creating an opportunity for platforms like Rumble to offer a credible, uncensored alternative,” said Tether CEO Paolo Ardoino. “Beyond our initial involvement as a shareholder, Tether intends to drive a meaningful relationship with advertising, cloud and crypto payment solutions with Rumble.”
RUM shares have soared 41% in after-hours action to $10.13.
It is unknown if any of the profits will be used to place bitcoin (BTC) on Rumble’s balance sheet. In November, Pavlovsky had sparked interest in his company being able to buy bitcoins.
