Tether Invests $775 Million in Rumble, Envisioning Growth Amidst Strong Profits

• Tether’s innovative leap into media through its $775 million investment in Rumble showcases its vision for decentralization beyond financial assets.

• This strategic move not only reaffirms Tether’s dominance in the stablecoin space but also reveals its ambition to support industries aligned with the principles of financial freedom.

• Paolo Ardoino emphasized that this investment is a testament to Tether’s commitment to support technological advancements that enhance society.

Tether invests $775 million in decentralized platform Rumble to bolster growth, underscoring commitment to decentralization and media disruption.

Tether Eyes Media Disruption With Rumble Investment

On December 20, the USDT issuer announced a strategic investment of $775 million in Rumble, a Bitcoin holding video-sharing platform and cloud services provider. This marked Tether’s significant pivot towards media disruption, reflecting its strategy to diversify and expand its influence.

The investment includes an initial $250 million cash infusion to Rumble along with an offer to acquire up to 70 million shares at $7.50 each, cumulatively valued at $775 million. Notably, Rumble’s Chairman and CEO Chris Pavlovski retains a controlling interest in the company, signifying a partnership rather than a takeover.

Paolo Ardoino, Tether’s CEO, expressed that the investment mirrors both companies’ commitment to decentralization, transparency, and freedom. He emphasized Rumble’s role as a reliable platform that challenges the status quo of mainstream media, which has been grappling with diminishing trust.

“Tether deeply believes in the fundamental values of freedom of speech and financial freedom. Our strategic investment in Rumble greatly underscores Tether’s focus in supporting technology and companies that empower humans, delivering independence and resilience to our society,” Ardoino remarked.

Meanwhile, Pavlovski views the financial backing as a tool to directly compete with YouTube. Indeed, YouTube is the dominant video-sharing platform globally with approximately 2.5 billion monthly active users as of March 2024.

“YouTube, lookout. I’m coming for your monopolistic market share, globally,” Pavlovski stated.

Tether Stablecoin Tokens in Circulation. Source: Tether

Tether, primarily recognized for its USDT stablecoin with a market capitalization of around $140 billion, has significantly broadened its investment portfolio this year. The company has ventured into various sectors, including agriculture, Bitcoin mining, artificial intelligence, and education.

In a recent Bloomberg interview, Ardoino shared that Tether would be concluding the year with profits exceeding $10 billion. He also mentioned that the company has reinvested more than half of these profits to strengthen its position in the stablecoin market, which includes recent investments in European stablecoin ventures StablR and Quantoz.

Looking ahead, Ardoino announced plans to invest additional profits into artificial intelligence. On social media platform X, the CEO stated that the company would launch its AI platform in early 2025. This initiative is set to broaden Tether’s technological footprint and open new growth opportunities in emerging markets.

“Just got the draft of the site for Tether’s AI platform. Coming soon, targeting end Q1 2025,” Ardoino said.

Conclusion

This investment signals Tether’s commitment to not only enhance its stablecoin ecosystem but also to capitalize on emerging opportunities within the decentralized media sector. The implications of this strategic move may reshape market dynamics, as Tether boldly enters an industry dominated by established giants. The future of media and decentralized finance may be closely intertwined, with Rumble poised to disrupt traditional platforms with backing from one of the largest players in the crypto space.