Rumble Stock Jumps After Stablecoin Giant Tether Buys 1 Million Shares
Analysis
Price Impact
MedTether's significant strategic investment in rumble and associated commitments to utilize crypto wallets for advertising and gpu purchases indicate a broadening of usdt's real-world utility and an expansion of tether's investment portfolio. while usdt's peg remains stable, this diversifies tether's assets and enhances the stablecoin's ecosystem perception.
Trustworthiness
HighThe information is derived from official sec filings and direct announcements by both tether and rumble, ensuring its accuracy and reliability.
Price Direction
NeutralAs a stablecoin, usdt's price is pegged to the u.s. dollar, so direct price fluctuation is not expected. however, the news is fundamentally positive for tether's long-term strategy, stability, and the expansion of usdt's utility, which could support its market capitalization and adoption.
Time Effect
LongThese investments and partnerships are strategic, long-term initiatives aimed at integrating crypto into mainstream platforms and diversifying tether's business ventures, with their full impact unfolding over an extended period.
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Article Content:
In brief Shares in Rumble (RUM) are up more than 14% on Monday, recently changing hands at $6.51. The move comes amid news that stablecoin firm Tether added more than 1 million shares of RUM last week for around $5.75 million. Rumble and Tether have been working together on a number of initiatives, including a crypto tipping feature for Rumble's platform. Decrypt’s Art, Fashion, and Entertainment Hub. Discover SCENE Shares in publicly traded video streaming platform Rumble are up more than 14% on Monday amid news that stablecoin giant Tether acquired another 1 million shares in the firm, valued around $5.75 million at the time of Friday’s disclosure. Data pulled from a recent SEC filing for Tether Holdings shows the firm acquired 1,063,670 additional shares of RUM in three separate transactions last week, at prices ranging between $5.38 and $5.46. USDT issuer Tether now owns nearly 104.4 million Rumble shares based on available SEC filings, valuing its stake in the video firm around $680 million as RUM recently changed hands at $6.51. Last year, Tether announced it would invest $775 million in the YouTube rival, granting it more than 103 million shares at $7.50 apiece. RUM also spiked at the time of that announcement, moving as high as $10.57, or around a 40% jump at the time. But even with today’s gains, shares have fallen steadily since January, resulting in nearly a 50% loss year-to-date. Beyond Tether’s initial investment, the pair have been connected more recently, as well. Earlier this month, Tether agreed to back a deal that allowed Rumble to agree to a deal to acquire AI and high-performance-computing firm Northern Data . Tether also will buy $150 million worth of GPUs from Rumble to help “co-create tools that empower content creators worldwide,” and invest up to $100 million in advertising via Rumble to boost usage of its crypto wallet. In October, the firms’ respective CEOs appeared onstage together at the Plan B Forum in Lugano, Switzerland to announce they were working together to add a crypto tipping feature , which would allow Rumble users to tip creators with Bitcoin and USDT. Rumble’s crypto roots have been deepening since the firm announced the creation of a Bitcoin reserve last November, following in the footsteps of Strategy (formerly MicroStrategy). At the end of Q3, the firm reported it held 210.82 BTC, now valued around $18.5 million. Bitcoin is up around 1.9% in the last 24 hours, recently trading at $88,392. Daily Debrief Newsletter Start every day with the top news stories right now, plus original features, a podcast, videos and more. Your Email Get it! Get it!