Tether Holdings Ltd., the company behind the world’s largest stablecoin USDT, has announced a major investment of $775 million in the video-sharing platform Rumble. This move comes as Tether is set to close 2024 with over $10 billion in net profits, marking a very profitable year with growth.
Breakdown of the deal shows that Tether is investing $775 million in Rumble by buying over 103 million shares at $7.50 each. Out of this, $250 million will go toward helping Rumble grow.
Rumble will also offer to buy back up to 70 million of its shares at $7.50 each, giving all shareholders the chance to participate under the same conditions. The transaction is expected to be completed in early 2025.
Paolo Ardoino, Tether’s CEO, said the investment in Rumble aligns with their shared values of decentralization, independence, transparency, and free expression. He noted that traditional media has lost trust, creating a need for platforms like Rumble, which offer an uncensored alternative.
He added that Tether is committed to supporting technologies that promote freedom and challenge centralized systems, and Rumble’s focus on open communication and innovation makes them a strong partner. Tether also plans to work with Rumble on advertising, cloud services, and crypto payment solutions in the future.
Chris Pavlovski, CEO of Rumble, expressed excitement about partnering with Tether. He highlighted the shared values of freedom and decentralization between cryptocurrency and free speech communities.
The $250 million cash boost strengthens their collaboration, supports growth, and brings Rumble closer to profitability by 2025. It also offers immediate liquidity for shareholders. Pavlovski sees Tether as the ideal partner to propel Rumble’s next growth phase.
Tether provides products that bring stability and flexibility to the crypto economy, with USDT being the most popular. Pegged to the US dollar, USDT has demonstrated consistent value over time. Tether asserts that each token is fully backed by equivalent reserves in dollars or other assets.
Another product is EURT, which is linked to the euro. It serves those who need a stable digital currency for euro-based transactions, particularly in regions where the euro is widely used. Similarly, Tether offers CNHT, a stablecoin tied to the offshore Chinese yuan, catering to markets that require a yuan-based digital currency for international trade.
Tether also provides XAUT, a stablecoin backed by physical gold. Each XAUT token represents one troy ounce of gold stored securely in a vault, allowing users to invest in gold while enjoying the benefits of a digital asset. Additionally, there is MXNT, a stablecoin pegged to the Mexican peso, which supports transactions in Latin America.
Tether’s profits have surged thanks to the growing demand for its stablecoin, USDT, which is pegged to the US dollar. The stablecoin’s market value has grown by $50 billion this year, reaching over $140 billion. Much of Tether’s earnings come from investing its reserves in assets like US Treasury bonds, gold, and other securities. In the third quarter, Tether earned $2.5B.
