Rumble and Tether Join Forces: $775 Million for a New Era of Content Freedom
An investment that accelerates Rumble's growth and unlocks new horizons for decentralization and innovation
So, Tether is putting $775 million into Rumble (Ticker: RUM). Sounds like big news, right? Let me break it down. Out of this huge amount, $250 million will go straight to boosting Rumble’s financial stability and helping them grow faster. The other part? They’re planning a share buyback for up to 70 million shares at $7.50 each. That’s a nice way to give some cash back to their shareholders.
Let’s Talk Numbers
Here’s where things get tricky. Rumble’s Q3 2024 revenue was $25.1 million—a solid 39% jump from last year’s $18 million. Pretty good, right? But—and it’s a big but—they’re still losing money. This quarter alone, the operating loss hit $31.6 million. For the whole year so far, they’ve lost $101.6 million. That’s no small number.
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Financial reports Rumble
Now, about that $7.50 per share. Tether is paying the market price, which shows they believe in Rumble’s potential. Before the deal, Rumble (Ticker: RUM) was valued at about $1.5 billion. With this partnership, who knows? That valuation could go up if everything goes as planned.
Why This Partnership Matters
Chris Pavlovski, Rumble’s CEO, says it’s not just about the money. He’s all in on the idea of freedom, transparency, and decentralization. Big words, but he seems to mean it. He even called Tether the "rocket pack" Rumble needs.
And for Tether? It’s a smart move. With 350 million users, they’re looking at ways to integrate crypto payments into Rumble. Imagine content creators getting paid directly in stablecoins—fast, easy, no middlemen. That’s a game-changer.
What’s the Plan?
As of September, Rumble had $130.8 million in cash. That’s a big drop from $218.3 million earlier this year. They’ve been spending heavily on their platform and tech. But with $250 million coming in from Tether, they should be in a better spot financially. Plus, their $70 million buyback program shows they’re confident in their own value.
The Big Picture
Here’s the thing: this isn’t just another investment story. It’s about two companies coming together with a shared vision. Sure, Rumble’s got a lot to prove—they’re losing money, and competition is tough. But this partnership with Tether might just give them the edge they need.
Only time will tell if this gamble pays off. But if it does, Rumble could go from being an underdog to one of the big players. “I think, i will buy it, maybe.”