Here’s what’s happening with Rumble (RUM) stock this week
The post Here’s what’s happening with Rumble (RUM) stock this week appeared on BitcoinEthereumNews.com.
Rumble Inc. (NASDAQ: RUM), a video-sharing platform, made headlines this week as its stock surged over 100% on December 23, reaching $14.30. The rally comes on the back of a $775 million investment announcement from Tether, the issuer of the leading stablecoin USDT, marking Rumble’s highest close since September 2022. As of press time, Rumble’s stock is trading at $13.30, reflecting a five-day gain of 63%. On a year-to-date basis, the stock has surged an impressive 206%, reflecting heightened investor interest. Rumble year-to-date price chart. Source: Finbold Tether’s $775 million investment on Rumble The announcement revealed that Tether has agreed to purchase approximately 103.3 million shares of Rumble’s Class A Common Stock at $7.50 per share. This transaction will generate gross proceeds of $775 million, significantly strengthening Rumble’s financial position, which already benefits from holding more cash than debt. Rumble has outlined a clear plan for utilizing the funds. Of the total, $250 million will support growth initiatives aimed at enhancing platform engagement and monetization, while $525 million will finance a self-tender offer to repurchase up to 70 million shares of Class A Common Stock at the same $7.50 price offered to Tether. This tender offer is designed to provide liquidity to stockholders and reinforce shareholder value. “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.”- Chris Pavlovski, Rumble’s Chairman and CEO, Interestingly, this agreement comes shortly after Rumble’s board approved allocating a portion of its cash reserves to Bitcoin (BTC), with plans to purchase up to $20 million in the cryptocurrency. Revenue growth and user metrics The recent surge in Rumble’s stock price has brought renewed attention to the company, which competes with major players like YouTube and Odysee. Rumble’s…
Filed under: News - @ December 24, 2024 5:22 pm