The post Tether Invests $775M in Rumble Sparking Stock Price Jump appeared on BitcoinEthereumNews.com.

Tether, the issuer of the world’s largest stablecoin, USDT, has announced a $775 million investment into Rumble, a video-sharing platform and cloud services provider. This strategic move has sent Rumble stock soaring by 50% in aftermarket trading. The investment, valuing Rumble shares at $7.50 each, will boost the platform’s financial stability and growth prospects. Tether $775M Rumble Investment Sends Stock Soaring 50% Following a recent press release, Tether revealed its decision to acquire 103,333,333 shares of Rumble’s Class A Common Stock at $7.50 per share. The $775 million transaction marks a strategic move into decentralized communications. News of the investment triggered a sharp 50% increase in Rumble stock price during aftermarket trading, reflecting investor optimism about the collaboration. Rumble stock had been experiencing a downturn following Federal Reserve announcements on interest rates. However, the USDT issuer’s backing has restored market confidence, driving the share price upward. This highlights the growing ties between cryptocurrency initiatives and decentralized media platforms. Chris Pavlovski, Rumble’s CEO expressed enthusiasm stating, “This transaction provides an immediate liquidity event for all of our stockholders who elect to participate in the self tender offer. 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.” These developments come just weeks after the video-sharing platform announced its intention to allocate up to $20 million of its treasury to Bitcoin. The decision reflects Rumble’s focus on diversifying its cash reserves and leveraging Bitcoin as a hedge against inflation. $250M Allocated For Growth, $525M For Share Buyback In addition, the USDT issuer has earmarked $250 million from the investment to boost Rumble’s growth initiatives. These funds will expand the platform’s operational capabilities and strengthen its financial foundation, enabling it to compete in the video-sharing…

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Filed under: News - @ December 21, 2024 7:13 am