Mentioned:
Rumble has become one of the most important companies in the media business. Now, Tether is backing them in a big way.
What’s happening:
- Tether has announced they are investing $775M USD into Rumble (NASDAQ: RUM)
By the numbers:
- Tether will purchase 103M shares of Rumble at a price of $7.50 USD per share
- $250M USD of the new capital will go towards growing Rumble’s core business, while the other $525M USD will be used to buy back up to 70M shares from current shareholders at $7.50 per share
Why it matters:
- Rumble has become one of the most important companies in media focused on maintaining free speech and being censorship resistant, which has attracted an enormous amount of content creators to their platform
- Rumble just recently made waves when they announced they would begin purchasing Bitcoin to hold directly as an asset, which is a part of a larger move to embrace digital assets
Going deeper:
- Rumble and Tether have publicly stated they plan to closely collaborate on both advertising opportunities and integrating crypto based payments into Rumble’s platform
- This is not the first time Tether has injected capital into a publicly traded company, previously putting $100M USD into Bitcoin mining company Bitdeer (NASDAQ: BTDR) and $100M USD into agriculture company Adecoagro (NYSE: AGRO)
The intrigue:
- Tether has also been using their stablecoin technology to enable new types of transactions, including just recently facilitating a large purchase of oil for the first time ever
