Pre-market trading for Rumble Inc. (NASDAQ: RUM) saw a notable uptick, with shares surging 40.89% to $10.13. This increase comes after Tether ($USDT), a pioneer in digital assets and the most popular dollar stablecoin with over 350 million users worldwide, announced a $775 million strategic investment.
Plans for Growth and Investment Allocation
The investment agreement specifies that Rumble will allocate $250 million of the funds toward growth initiatives, strengthening the company’s position in the market. A self-tender offer for up to 70 million shares of Rumble’s Class A Common Stock at a price of $7.50 per share—the same price as Tether’s share purchase—will be financed with the remaining funds. Chris Pavlovski, the chairman and CEO of Rumble, will continue to own a majority share in the business in spite of this deal.
A Common Goal for Free Expression and Decentralization
Rumble and Tether’s common ideals of decentralization, independence, and openness are reflected in this relationship. As public confidence in conventional media has been eroding, Rumble has positioned itself as an unfiltered alternative. Tether’s investment underscores its commitment to supporting platforms that promote free expression and challenge centralized systems. The collaboration aims to accelerate Rumble’s growth while reinforcing its mission to foster open communication and innovation.
Transaction Details and Future Outlook
Under the agreement, Tether will purchase 103,333,333 shares of Rumble’s Class A Common Stock at $7.50 per share, providing a substantial liquidity event for Rumble’s stockholders. Chris Pavlovski has promised to submit no more than 10 million shares, and several owners have promised to take part in the tender offer.
Standard regulatory permissions, such as adherence to the Hart-Scott-Rodino Antitrust Improvements Act, are required for the investment and tender offer. Rumble’s governance structure will not alter at closure, which is anticipated in Q1 2025, with Tether owning a minority ownership and having no board representation. This investment is set to further solidify Rumble’s role in creating a decentralized and inclusive digital landscape.
