FILE PHOTO: Tether logo is seen in this illustration taken March 31, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
(Reuters) - Video sharing platform and cloud services provider Rumble said on Friday it has entered into an agreement with Tether, a blockchain-enabled platform, to receive a strategic investment of $775 million.
Shares of the Toronto-based company were up 43.7% in trading after the bell.
Cryptocurrencies have soared since Donald Trump won the presidential election. His pro-cryptocurrency stance, including a plan to create a U.S. bitcoin strategic reserve, has stoked the enthusiasm of crypto bulls, leading to a record rally in bitcoin.
Rumble said that following the completion of the transaction, Chris Pavlovski, Rumble's chairman and CEO, will retain his controlling stake in the company.
While Tether will own a minority position in Rumble's outstanding common stock, it will not have the right to designate any members of Rumble's board.
Rumble also said that it will use a portion of the proceeds to fund a self-tender offer for up to 70 million of Rumble's common stock.
The investment and the tender offer are expected to close in the first quarter of 2025.
(Reporting by Rishi Kant in Bengaluru; Editing by Shreya Biswas and Alan Barona)
