Rumble, a video sharing platform and cloud services provider, announced on Friday that it has finalized an agreement with Tether, a blockchain-enabled platform, for a substantial strategic investment totaling $775 million. Following this news, shares of the Toronto-based company experienced a significant uptick, rising by 43.7% in post-market trading activity. The surge in value comes amidst a broader surge in the cryptocurrency market, with digital assets witnessing a considerable upswing since the election of former President Donald Trump.
Trump’s vocal support for cryptocurrencies, exemplified by his proposal to establish a U.S. bitcoin strategic reserve, has garnered favor from enthusiasts and investors alike. This pro-cryptocurrency stance has fueled optimism among cryptocurrency advocates, contributing to a historic bull run in the price of bitcoin. Rumble has indicated that post-transaction, Chris Pavlovski, the company’s chairman and CEO, will retain his majority ownership stake in the organization. Meanwhile, Tether, as the new investor, will hold a minority interest in Rumble’s outstanding common stock, without the authority to appoint members to Rumble’s board.
In addition to the strategic investment, Rumble disclosed plans to allocate a portion of the raised capital towards a self-tender offer intended for the repurchase of up to 70 million shares of Rumble’s common stock. The company anticipates that both the investment agreement and the subsequent tender offer will be completed by the first quarter of 2025. Reporting on this development was provided by Rishi Kant in Bengaluru, with editing carried out by Shreya Biswas and Alan Barona.
