Tether, the powerhouse behind the world’s largest stablecoin, is expanding its horizons beyond cryptocurrency. The company has announced a $775 million investment in Rumble, a video-sharing platform known for its appeal among right-wing influencers. This move marks Tether’s second major investment outside the crypto sphere, reflecting its ambitions to build a broader tech network aligned with its libertarian ethos.
Expanding Beyond Crypto
Flush with profits projected to exceed $10 billion in 2024, Tether is looking beyond its core business. CEO Paolo Ardoino describes the Rumble deal as part of a commitment to “freedom tech” — technologies that champion decentralisation and resist censorship from governments and large corporations.
Rumble, founded in 2013, has grown steadily as an alternative to YouTube, attracting around 67 million monthly active users. Its independence is bolstered by owning its own cloud infrastructure, shielding it from reliance on tech giants like Amazon or Google.
The Deal Breakdown
Tether’s $775 million investment includes $250 million earmarked for growth initiatives to help Rumble expand its user base and platform capabilities. The remaining $525 million will fund a tender offer for up to 70 million of Rumble’s publicly traded Class A shares at $7.50 per share—a slight premium over their recent trading price.
The news sent Rumble shares soaring 35%. Under the terms of the deal, CEO Chris Pavlovski can sell up to 10 million shares but will maintain controlling interest in the company.
Strategic Implications
Tether’s move aligns with broader trends in tech and media. Owning a stake in Rumble could bolster Tether’s influence in conservative circles and potentially help the company strengthen ties in Washington, D.C., where it has faced scrutiny over its offshore operations and alleged links to illicit activities.
This investment also complements Tether’s September 2023 acquisition of a stake in Northern Data, a cloud and AI firm. Ardoino envisions these ventures as steps toward creating an independent tech ecosystem.
A Decentralised Future
While Tether’s motivations are strategic, Ardoino insists the company will not interfere with Rumble’s editorial autonomy. He emphasises a vision of decentralised and apolitical platforms, contrasting it with Elon Musk’s X, which he described as centralised and politically charged.
Ardoino also hinted at integrating stablecoins into social media platforms in the future, suggesting a potential intersection between Tether’s crypto expertise and Rumble’s growing media presence.
Tether’s foray into media via Rumble highlights its ambition to reshape the tech landscape, combining crypto with “freedom tech” initiatives. Whether this gamble pays off remains to be seen, but it underscores Tether’s intent to expand its influence far beyond the world of digital currency.
