Rumble will use $250 million of the money to support operations and the remainder to fund a tender offer for up to 70 million shares of its common stock.
Video platform Rumble (NYSE:RUM) is set to receive a hefty $775 million strategic investment from Tether, the company behind the largest stablecoin.
According to a press release on Friday evening, Rumble will use $250 million of the funds to support its operations. The remaining amount will be used to fund a tender offer for up to 70 million shares of its common stock at a price of $7.50. Notably, Tether is also acquiring its stake in RUM at the same price of $7.50 per share.
"I truly believe Tether is the perfect partner that can put a rocket pack on the back of Rumble as we prepare for our next phase of growth," said Chris Pavlovski, CEO of Rumble.
"Legacy media has increasingly eroded trust, creating an opportunity for platforms like Rumble to offer a credible, uncensored alternative," said Paolo Ardoino, CEO of Tether. "Beyond our initial shareholder stake, Tether intends to drive towards a meaningful advertising, cloud, and crypto payment solutions relationship with Rumble."
Following the announcement, RUM shares skyrocketed by 41% in after hours trading, reaching a price of $10.13.
It is worth noting that the press release does not specify whether any of the proceeds will be used to add bitcoin (BTC) to Rumble's balance sheet. However, Pavlovski had previously expressed interest in his company potentially buying bitcoin in November.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any
investments made based on the information provided in this article. Cryptocurrencies are highly volatile
and it is highly recommended that you invest with caution after thorough research！
If you believe that the content used on this website infringes your copyright, please contact us
immediately (info@kdj.com) and we will delete it promptly.
