Tether Invests in Decentralized Media: $775 Million for Rumble
Date: 2024-12-23 Author: Henry Casey Categories: BUSINESS
Tether will contribute $250 million in cash and support the repurchase of up to 70 million Rumble shares at $7.50 per share. The total investment will amount to $775 million, which is equivalent to 103 million shares. The deal is expected to close in the first quarter of 2025, with Rumble CEO Chris Pawlowski retaining a majority stake.
Rumble, which trades on the Nasdaq under the ticker RUM, is known for its collaboration with Trump Media & Technology Group, including the social network Truth Social. The platform attracts an American audience with conservative views, actively associating with the alt-tech movement. Rumble Reaches 67 Million Active Users
The company's revenue in the third quarter of 2024 was $25.1 million, up 39% year-on-year. However, losses widened to $31.5 million, up from $29 million a year earlier. News of the Tether deal sent Rumble's stock price up more than 50%.
Amid growing interest in cryptocurrencies, Rumble's board of directors approved the creation of a Bitcoin reserve in November, investing $20 million, following the example of MicroStrategy.
Tether CEO Paolo Ardoino told Bloomberg that the company's net profit for the year could exceed $10 billion, with more than half of the amount already invested in promising projects.
"Next year, we intend to direct half of the profit to investments," Ardoino said, adding that this is just the beginning of the company's major strategy. In the first quarter of 2025, Tether plans to launch an artificial intelligence platform integrated with mobile devices.
In addition, the company is actively investing in Bitcoin mining, renewable energy, telecommunications, and educational initiatives. Among the key areas are also loans for commodity trading.
Ardoino expressed hope for favorable conditions for regulating the cryptocurrency industry in the United States under President Donald Trump.
Today, Tether serves more than 100 million USDT holders worldwide.
