Rumble shares rise 46% in premarket trading on $775M funding from Tether By Investing.com

Investing.com — Shares of Rumble (NASDAQ: ) soared more than 46% in after-hours trading Monday following a $775 million investment from , the investment firm behind the widely used USDT stablecoin.

The agreement, which emphasizes the growth of cooperation between the countries of cryptocurrency and freedom of expression, is expected to improve the growth of Rumble and provide money to shareholders.

According to a statement from Rumble’s CEO, Chris Pavlovski, the partnership with Tether is exciting because of our shared values, transparency, and the fundamental right to free speech.

Pavlovski said that there is a strong connection between the cryptocurrency community and the advocates of freedom of speech, pointing to the commitment to freedom and the fight against centralized systems.

The money also strengthens Rumble Financially, $250 million in capital has been allocated to support the company’s growth, including expanding its video sharing platform and cloud services.

In addition to the direct investment, the agreement includes a personal commitment, which will allow the stockbroker to sell 70 million shares of Rumble’s Class A Common Stock at $7.50 per share, the same price as Tether’s money.

This provides a cashless opportunity for Rumble investors. Pavlovski noted that the deal will not only provide immediate financial support but also position Rumble for continued expansion.

He also said that he is confident that the partnership with Tether will be like a “rocket pack” for the company when it starts to grow.

The investment is also seen as a move by Tether, which is looking to strengthen its influence in the media and technology sector.

The CEO of Tether, Paolo Ardoino, highlighted how this partnership is in line with Tether’s main goal of empowering distributed technology and providing an unconventional alternative to traditional media.

Tether plans to continue to expand its relationship with Rumble, and explore advertising, cloud services, and cryptocurrency payment options in the future.

The transaction, which is expected to close in the first quarter of 2025, will make Tether a minority shareholder in Rumble.

However, despite the money, the Rumble’s reign, including Pavlovski’s supreme reign, will not change. This Agreement is subject to customary closings, including statutory covenants.