Tether Invests $775M in Rumble, Backing YouTube Alternative Boasting Free Speech
Tether, the issuer of the largest stablecoin by market capitalization, has made a $775 million investment in Rumble, a video-sharing platform known for championing free speech and offering an alternative to YouTube.
“Tether deeply believes in the fundamental values of freedom of speech and financial freedom,” Tether CEO Paolo Ardoino wrote in a December 20 post on X.
He described the investment as a strategic step in supporting technologies and companies that empower individuals and foster societal resilience.
Ardoino Expresses Confidence in Rumble Leadership
Ardoino expressed confidence in Rumble’s leadership under CEO Chris Pavlovski, praising the platform’s achievements and hinting at future collaboration.
Tether and Rumble aim to explore joint initiatives involving advertising, cloud services, and crypto payment solutions.
Pavlovski, sharing Ardoino’s enthusiasm, took to X to express his determination to challenge YouTube’s dominance in the video-sharing market.
“YouTube, lookout. I’m coming for your monopolistic market share globally,” he declared.
YouTube, lookout.
I’m coming for your monopolistic market share, globally.
— Chris Pavlovski 🏴☠️ (@chrispavlovski) December 20, 2024
The announcement triggered a sharp rise in Rumble’s stock price (RUM), which surged 51.60% during after-hours trading, reaching $10.90, according to Google Finance.
Rumble’s embrace of cryptocurrency extends beyond Tether’s investment.
On November 25, the platform confirmed plans to add Bitcoin to its balance sheet, with its board approving up to $20 million of the company’s excess cash reserves for Bitcoin purchases.
The decision followed a poll by Pavlovski, where 93.9% of 43,790 respondents supported the proposal.
Cantor Fitzgerald Acquires 5% Stake in Tether
Financial services giant Cantor Fitzgerald has acquired a 5% stake in Tether, the world’s largest stablecoin issuer, in a deal valued at up to $600 million.
The acquisition, which occurred within the past year, positions the firm to potentially leverage political influence through its CEO Howard Lutnick, who was recently appointed as U.S. President-Elect Donald Trump’s Secretary of Commerce.
Cantor Fitzgerald’s involvement with Tether could bolster the stablecoin issuer’s standing amid increasing regulatory scrutiny.
Tether has faced ongoing investigations from the U.S. Attorney’s Office for the Southern District of New York regarding alleged use of its stablecoin, USDT, in illicit activities such as terrorism financing.
Amid these challenges, Lutnick’s political clout may play a pivotal role in navigating regulatory hurdles.
Tether’s largest shareholder, Giancarlo Devasini, reportedly expressed confidence in Lutnick’s ability to “defuse threats facing Tether,” according to sources cited in the WSJ.
Lutnick, who has been working closely with Trump as a transition advisor, is vetting candidates for key government roles, some of which could directly impact oversight of Tether.
He is expected to step down as Cantor Fitzgerald’s CEO upon Senate confirmation of his cabinet position.
Source: cryptonews.com
