As a seasoned researcher with a keen eye for market trends and a knack for deciphering investment moves, I find this strategic partnership between Rumble (RUM) and Tether intriguing. With my extensive background in financial analysis and tech industry insights, I can’t help but see the potential synergies these two entities could leverage.

Video-sharing platform rival Rumble (RUM) is set to secure a strategic $775 million investment from the prominent stablecoin company, Tether.

Rumble intends to allocate $250 million towards operating expenses and the remaining funds for purchasing up to 70 million shares of its common stock at a cost of $7.50 each, as stated in a press release issued on Friday evening. This same price of $7.50 per share is what Tether is paying for its ownership stake.

According to Rumble CEO Chris Pavlovski, he strongly feels that Tether could be an ideal collaborator, providing the boost needed for Rumble during our upcoming expansion period.

In simpler terms, Paolo Ardoino, the CEO of Tether, stated that traditional media has been losing trust over time, paving the way for platforms such as Rumble to present a reliable, uncensored option. Furthermore, Ardoino mentioned that Tether aims to establish significant partnerships in advertising, cloud services, and crypto payments with Rumble, beyond their initial investment stake.

RUM shares have rocketed higher by 41% in after hours action to $10.13.

It remains uncertain whether any funds will be allocated to acquire Bitcoin (BTC) and add it to Rumble’s assets. Back in November, Pavlovski hinted at a potential move by his firm to purchase Bitcoin.

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2024-12-21 01:31