Tether, the company behind the world’s largest stablecoin, has announced a $775 million investment in Rumble, a video platform popular among right-wing influencers. The move highlights Tether’s growing ambitions beyond the cryptocurrency realm and its commitment to what CEO Paolo Ardoino describes as “freedom tech.”
Breaking Down the Deal
The investment includes $250 million earmarked for Rumble’s growth initiatives, aiming to expand its platform and user base. The remaining $525 million will fund a tender offer for up to 70 million Class A shares at $7.50 per share, slightly above the market price.
Rumble, founded in 2013, is smaller than YouTube, with 67 million monthly active users. However, it has become a hub for young conservatives and a significant player in the alternative media landscape. The platform’s independence is bolstered by its proprietary cloud service, freeing it from reliance on tech giants like Google and Amazon.
Tether’s Vision for Freedom Tech
This investment aligns with Ardoino’s broader vision of “freedom tech,” which includes technologies that empower uncensored communication and decentralised finance. Ardoino commended Rumble’s self-reliant infrastructure and hinted at potential synergies with Tether’s stablecoin ecosystem.
He believes stablecoins will become integral to social media platforms, enabling seamless payments and fostering decentralisation. Ardoino emphasised that Tether has no intention of interfering with Rumble’s editorial policies, positioning the platform as apolitical and decentralised.
Strategic Implications for Tether
Tether’s investment in Rumble comes amid its efforts to gain legitimacy in Washington, D.C., and shed its reputation for being favoured by criminals. Owning a platform popular with Trump loyalists could provide Tether with strategic leverage, particularly as political dynamics influence the regulatory landscape.
The move also mirrors recent disruptions in the media landscape, such as Elon Musk’s use of X to amplify political narratives. Tether’s stake in Rumble positions it as a potential counterbalance to existing social media giants, furthering its influence in the communication sector.
Following the announcement, Rumble’s shares surged by 35%. Chris Pavlovski, Rumble’s CEO, retains control of the company but is eligible to sell up to 10 million shares under the deal’s terms. The partnership with Tether underscores Rumble’s ambitions to challenge mainstream platforms while maintaining its appeal to its core audience.
Beyond Crypto: A Broader Tech Network
This marks Tether’s second major investment outside the crypto industry. In 2023, Tether acquired a stake in cloud and AI firm Northern Data, reflecting Ardoino’s goal to build an independent tech ecosystem. By diversifying its portfolio, Tether aims to strengthen its foothold in critical sectors while promoting decentralised, censorship-resistant technologies.
As Tether eyes profitability exceeding $10 billion in 2024, the investment in Rumble signals a bold step towards redefining its role in the tech and media industries. The company’s commitment to decentralisation and freedom tech could set the stage for a new era of collaboration between cryptocurrency and alternative media platforms.
