Why did Tether invest over $770 million in the video platform Rumble? The business strategy backed by Trump's circle.

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1 year ago

Author: Nancy, PANews

On February 7, the video-sharing platform Rumble announced that it has completed a strategic investment of $775 million from Tether. Although Tether, which earns over $10 billion annually, has been accelerating its investment pace in recent months, this cross-industry investment in Rumble still comes as a surprise.

Opportunities Behind the Over $775 Million Strategic Investment

Since Rumble announced its final agreement with Tether in December 2024 to receive a strategic investment of $775 million, the investment and acquisition offer have officially been completed recently. As part of the deal, Tether purchased 103,333,333 shares of Rumble Class A common stock at a price of $7.50 per share, totaling $775 million. Of this amount, $250 million will be used for growth plans, including attracting more content creators, strategic acquisitions, and enhancing Rumble Cloud's technological infrastructure.

Founded in 2013, Rumble has gained popularity among creators for advocating free speech, fairer revenue distribution, and empowering more copyright holders, becoming a haven for those opposing the excessive regulation of traditional social media platforms. For instance, during the 2024 U.S. presidential election, Rumble broke records with 1.79 million concurrent viewers, becoming a center for political discussion.

Regarding this investment, Rumble CEO Chris Pavlovski revealed in an interview with Barstool Sports founder Dave Portnoy that this investment will drive Rumble's global expansion, attract new creators, and redefine the meaning of a free speech platform. Additionally, Pavlovski mentioned the impact of Trump's election on Rumble's mission, believing that the partnership with Tether will help Rumble expand globally, especially in regions where free speech is suppressed. Integrating cryptocurrency will change how creators monetize their content, providing crypto-based tipping and payment options, further reducing reliance on centralized systems.

Moreover, Tether's choice to invest in Rumble may be related to the close ties between Rumble and Trump, as well as its desire to expand its business presence in the U.S.

Rumble has a deep relationship with U.S. President Trump, even being referred to as a "Trump concept stock" by outsiders. As early as the 2020 U.S. presidential election, Trump began transitioning to Rumble after being banned from mainstream social media platforms like Facebook, Twitter, and YouTube, losing his voice on social media. At the same time, Trump launched his own social platform, Truth Social, which utilized Rumble's video and streaming services. Notably, besides Trump, U.S. Vice President J.D. Vance's venture capital fund, Narya Capital Management, has also participated in Rumble's investment.

With Trump potentially returning to office, the U.S.'s crypto-friendly regulatory environment has also attracted Tether's interest. In January of this year, Tether CEO Paolo Ardoino pointed out in an interview with Bloomberg TV that the improved regulatory expectations for the crypto industry, combined with Tether's recent $775 million investment in the U.S. public company Rumble, provide a good opportunity for the company to reassess the U.S. market. However, he also emphasized that while further expansion into the U.S. market is not ruled out, it is necessary to wait for regulatory clarity and specific guidance, and the final decision will be based on the development of the U.S. legal framework.

Buying Bitcoin, Crypto Strategy Boosts Stock Price Significantly

Since the end of last year, Rumble has frequently appeared in the crypto space. In addition to receiving Tether's investment, Rumble has also actively built a Bitcoin reserve and launched a series of related crypto products.

"Should Rumble add Bitcoin to its balance sheet?" In November 2024, Rumble CEO Chris Pavlovski initiated a poll on X, asking whether Bitcoin should be included in the company's balance sheet, which received strong support.

Why did Tether invest over $775 million in the video platform Rumble? The business behind the Trump connection

A few days later, Rumble announced an investment of up to $20 million to purchase Bitcoin as an important part of the company's financial diversification strategy, positioning Bitcoin as a strategic asset and an inflation hedge.

At that time, Chris Pavlovski stated that Bitcoin is still in the early adoption phase, and the increasing crypto-friendly U.S. government policies and institutional investors are accelerating this process. Unlike any government-issued currency, Bitcoin will not be diluted by endless printing, making it a valuable inflation hedge and an excellent addition to the treasury. The company plans to integrate cryptocurrency into its ecosystem, creating a leading video and cloud service platform for the crypto community. Of course, Chris Pavlovski later indicated that this would not be the last time, hinting that the company may continue to increase its Bitcoin holdings in the future.

In January of this year, Rumble also announced the launch of Rumble Wallet, a crypto wallet supporting Bitcoin and USDT, which will provide creators with new transaction methods. Creators can receive fan tips and subscription income through these two cryptocurrencies. Tether CEO Paolo Ardoino commented, "One cool feature of Rumble Wallet is using AI agents/assistants to help manage payments, suggest Bitcoin savings strategies based on past activities, and tip the most followed creators."

Why did Tether invest over $775 million in the video platform Rumble? The business behind the Trump connection

This series of crypto strategies has also positively impacted Rumble's stock price. According to Google Finance data, since Rumble announced its intention to adopt a Bitcoin funding strategy, the company's stock price has soared, rising as much as 169.8% and reaching a historic high of $16.27.

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