(Reuters) – Video sharing platform and cloud services provider Rumble said on Friday it has reached an agreement with Tether, a blockchain-enabled platform, to make a strategic investment of $775 million receive.
Shares of the Toronto-based company rose 43.7% in after-hours trading.
Cryptocurrencies have surged since Donald Trump won the presidential election. His pro-cryptocurrency stance, including a plan to create a strategic U.S. Bitcoin reserve, has fueled the enthusiasm of crypto bulls and led to a record rally in Bitcoin.
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Rumble said that Chris Pavlovski, chairman and CEO of Rumble, will retain his controlling interest in the company following the closing of the transaction.
While Tether will own a minority interest in Rumble’s outstanding common shares, it will not have the right to appoint members of Rumble’s board of directors.
Rumble also said it will use a portion of the proceeds to fund a self-tender offer for up to 70 million shares of Rumble common stock.
The investment and the takeover offer are expected to close in the first quarter of 2025.
(Reporting by Rishi Kant in Bengaluru; Editing by Shreya Biswas and Alan Barona)
