Tether to make $775 million strategic investment in video sharing platform Rumble

PANews reported on December 21 that according to The Block, stablecoin issuer Tether has made a “strategic investment” of US$775 million in the video sharing platform Rumble. The move appears to indicate Rumble is deepening its focus on the cryptocurrency industry, with the company announcing last month that it would allocate up to $20 million of its excess cash reserves to Bitcoin.

Rumble said it would use $250 million of the total to "support growth initiatives." The remaining funds will be used to acquire up to 70 million shares of Class A common stock at $7.50 per share, the same price as Tether's investment. Rumble Chairman and CEO Chris Pavlovski will retain his controlling interest in the company and said he will not sell more than 10 million shares. Tether will purchase a total of 103,333,333 shares.