Rumble (RUM, Financial) saw its stock rise by over 40%, reaching its highest level in 11 months at $10.12. The surge follows the announcement of a $775 million strategic investment agreement with Tether, the largest company in the digital asset sector and the most widely used USD stablecoin globally, boasting over 35 million users. Tether has become a significant symbol of financial inclusivity in recent years.
Rumble plans to utilize $250 million of the proceeds to support its growth initiatives, while the remaining funds will be used for a self-tender offer of up to 70 million shares of its Class A common stock at the same price as Tether's investment, $7.50 per share. Post-transaction, Rumble's Chairman and CEO, Chris Pavlovski, will maintain his controlling stake in the company.
