Tether, the stablecoin giant, has announced a $775 million investment in Rumble, a video platform favoured by right-wing influencers. This marks Tether’s second major venture outside of cryptocurrency, following its September 2023 stake in cloud and AI firm Northern Data. Tether CEO Paolo Ardoino described the move as part of the company’s broader strategy to back “freedom tech,” including uncensored communication platforms and decentralised systems.

Investment Details

The deal includes $250 million earmarked for Rumble’s growth initiatives to expand its reach and $525 million for a tender offer to acquire up to 70 million of Rumble’s Class A shares at $7.50 each, slightly above the stock’s recent trading price of $7. Following the announcement, Rumble shares surged 35%. The platform’s CEO, Chris Pavlovski, retains a controlling stake but has the option to sell up to 10 million shares.

Rumble’s Appeal to Tether

Founded in 2013, Rumble has gained traction among young conservatives, boasting 67 million monthly active users. The platform differentiates itself by operating its own cloud infrastructure, avoiding reliance on tech giants like Google or Amazon. Ardoino praised this independence, aligning it with Tether’s libertarian ethos. He also suggested that stablecoins like Tether’s could play a significant role in the future of social media platforms.

Strategic Implications

This investment comes amid heightened political and media manoeuvring, with figures like Elon Musk leveraging platforms such as X (formerly Twitter) to influence public discourse. By acquiring a stake in Rumble, Tether positions itself to deepen ties in Washington, DC, while appealing to a key demographic aligned with Trump’s base. Ardoino emphasised that Tether does not intend to interfere with Rumble’s editorial autonomy, envisioning a decentralised and apolitical platform.

Tether’s pivot towards investments like Rumble and Northern Data underscores its ambition to build an independent tech ecosystem. While the company continues to face scrutiny over its operations and links to criminal activities, these moves signal a concerted effort to diversify and establish legitimacy in the broader tech and media landscapes.