Longboat Key-based Rumble receives $775M strategic investment

Video-sharing and cloud services platform Rumble, which is based on Longboat Key and aims to provide access to uncensored content, has entered into an agreement with a cryptocurrency company for a strategic investment of $775 million.

The crypto firm, Tether, has agreed to purchase 103.33 million shares of Rumble's Class A Common Stock at $7.50 per share, according to a statement. Tether reports it did $10.29 trillion in transaction volume in 2023, with many of its 350 million users in developing countries.

“Many people may not realize the incredibly strong connection between the cryptocurrency and free speech communities, which is rooted in a passion for freedom, transparency and decentralization,” Rumble CEO Chris Pavlovski says in a statement.

Rumble, which posted $81 million in revenue in 2023, will use $250 million of Tether’s investment to support growth initiatives, the statement says. The remaining $525 million will fund a self tender offer for up to 70 million shares of Rumble’s Class A Common Stock at $7.50 a share.

“I truly believe Tether is the perfect partner that can put a rocket pack on the back of Rumble as we prepare for our next phase of growth,” says Pavlovski, who will retain his controlling stake in the company following completion of the transaction, the release states. 

Tether will own a minority position and will not be able to designate any members of the board.

Collaborating with Rumble “aligns with our long-standing commitment to empowering technologies that promote freedom and challenge centralized systems,” Tether CEO Paolo Ardoino says in a statement. “Beyond our initial shareholder stake, Tether intends to drive towards a meaningful advertising, cloud and crypto payment solutions relationship with Rumble.”

The investment and tender offer are expected to close in the first quarter. If the transaction has not occurred by April 30, the agreement is subject to termination.