USDT issuer Tether announced a $775M investment in Rumble, a video-sharing platform that enforces free speech. The partnership looks to widen Rumble’s international scope and grant the company credibility as an alternative to YouTube. The move fits into Tether’s strategy of supporting technologies to encourage individual empowerment and societal resilience.
Tether Invests in Rumble Boosting Free Speech
Tether’s CEO Paolo Ardoino stated that the investment in building robust platforms for free expression is strategically important and cannot be overlooked. Rumble will collaborate to integrate advertising, cloud services, and cryptocurrency payment solutions. However, Rumble’s CEO, Chris Pavlovski, plans to use this partnership to increase competition in the video-sharing market.
Tether deeply believes in the fundamental values of freedom of speech and financial freedom.
Our strategic investment in Rumble greatly underscores @Tether_to 's focus in supporting technology and companies that empower humans, delivering independence and resilience to our… https://t.co/vHYVbQJnKk
— Paolo Ardoino 🤖🍐 (@paoloardoino) December 20, 2024
Rumble’s stock price has already soared 51.60% in after-hours trading as a result of the investment. The very sharp rise in market cap indicates investors’ confidence in the growth opportunities the partnership has created. The deal also fits with Rumble’s push to diversify its revenue streams through cryptocurrency-related projects.
Rumble Embraces Bitcoin for Financial Flexibility
It was announced that Rumble would add Bitcoin (BTC) to its balance sheet to commit to cryptocurrency adoption. The company board authorised using its excess cash reserves to buy up to $20m of Bitcoin. Pavlovski said in a poll that 93.9% of respondents said ‘yes’ to the proposal, which led her to make the decision.
The fact that cryptocurrency is handled well complements the investment Rumble made because it helps solidify Rumble as a tech-forward platform. These steps will give Rumble further financial flexibility and attract a broader spectrum of people. However, it continues offering innovative ways to counter YouTube’s utter dominance.
Tether adds political leverage to Cantor Fitzgerald’s Stake
Separately, the stablecoin issuer signed a deal to sell a 5% stake to Cantor Fitzgerald for up to $600m. This deal brings USDT closer to financial services firms, as the latter’s involvement reinforces USDT in light of increased regulatory scrutiny. The acquisition timing is also interesting, as Cantor Fitzgerald’s CEO, Howard Lutnick, has become a key player in U.S. politics as Donald Trump’s Secretary of Commerce.
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Lutnick’s political influence will be crucial in addressing USDT’s regulatory challenges. The currency issuer is investigating the possible inappropriate use of its currency in a crime. Giancarlo Devasini, Tether’s largest shareholder, said he trusts Lutnick to handle these regulatory pressures.
Lutnick’s political connections will help position Tether to leverage his political connections and the company’s presence better in the digital finance sector. Furthermore, Lutnick’s upcoming move to the Commerce Department could improve Tether’s operation if regulatory adjustments can be made in his favour.
Conclusion
This shows that USDT cares about free speech and the financial freedom that platforms like Rumble can offer. Rumble’s collaboration with Tether wants to reform the video-sharing landscape by providing alternatives to big players like YouTube. Meanwhile, Cantor Fitzgerald’s stake in Tether bolsters the stablecoin issuer’s position when regulators do not want to play ball.
FAQs
What is Tether’s recent investment in Rumble?
Tether has announced a $775 million investment in Rumble, a video-sharing platform supporting free speech.
Why did USDT invest in Rumble?
The investment aligns with Tether’s strategy to support technologies promoting individual empowerment and societal resilience.
How will Rumble use USDT’s investment?
Rumble plans to expand internationally, integrate advertising, cloud services, and cryptocurrency payment solutions, and challenge YouTube’s dominance.
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