Rumble, a tech company listed on NASDAQ as RUM, has seen its stock price rise dramatically, increasing around 300% since January, largely due to a $775 million investment from Tether, the firm behind the popular stablecoin. Tether, valued at nearly $140 billion, is the third-largest cryptocurrency but offers stability unlike Bitcoin and Ethereum. Rumble aims to build a censorship-free internet infrastructure and faces financial challenges, having reported significant losses recently. However, the investment from Tether has alleviated liquidity concerns, giving Rumble more time to grow its user base and explore new revenue sources, making it an intriguing opportunity for investors.
Shares of technology company Rumble (NASDAQ: RUM) have surged to 52-week highs, up about 300% since January’s lows. This impressive rise is largely due to a significant $775 million investment from the investment arm of Tether Limited, the firm behind the popular cryptocurrency stablecoin, Tether (CRYPTO: USDT).
Tether is currently the third-largest cryptocurrency in the world, boasting a Market capitalization close to $140 billion, trailing only Bitcoin and Ethereum. Unlike these cryptocurrencies, Tether is a stablecoin designed to maintain a 1-to-1 value with the U.S. dollar, offering a less volatile way for investors to engage with the crypto Market.
Why Rumble is Gaining Attention
Rumble caught the eye of investors when it went public in 2022, aiming to disrupt the internet infrastructure space and provide an alternative to conventional platforms like YouTube and Amazon Web Services (AWS). However, ambitious projects come with high costs, and the company recorded a net loss of $116 million in 2023, along with an additional $102 million in the first three quarters of 2024.
Despite these financial challenges, Rumble has not resorted to diluting its shareholders with stock offerings or accumulating debt. Instead, it has been using its cash reserves to fund its growth.
The infusion of Tether’s capital has alleviated concerns about Rumble’s liquidity. With 67 million monthly active users, the platform has a substantial audience, though it’s a slight decline from 71 million users a year prior. The challenge for Rumble remains in attracting advertisers, as CEO Chris Pavlovski pointed out in a recent earnings call.
Positive Outlook
Rumble now holds a stronger position with Tether’s investment, extending its operational runway and boosting investor confidence. While there are still hurdles, the additional funds provide Rumble with more time to refine its strategies and potentially increase its user base and revenue.
Investors eager to explore new opportunities in the tech sector may want to keep an eye on Rumble as it continues its quest for Market relevance in the evolving digital landscape.
Tags: Rumble, Tether, cryptocurrency, technology news, NASDAQ, stablecoin, investment, Market trends, digital platforms
What is the company that just received a $775 million investment?
The company that received the investment is a tech startup focused on competing with platforms like YouTube and AWS. They aim to provide better services in online video and cloud storage.
Who made the investment?
The investment comes from the company behind the world’s third-largest cryptocurrency. They see potential in this startup and want to support its growth.
What will the investment be used for?
The $775 million will be used to improve the company’s technology, expand their services, and increase their Market presence. This includes hiring more staff and enhancing their platform.
How does this company plan to compete with YouTube and AWS?
The startup aims to offer lower fees, better user experiences, and more flexible features compared to YouTube and AWS. They focus on providing value to both content creators and consumers.
What does this mean for the future of online platforms?
This investment could signal a shift in how online platforms operate, encouraging competition and innovation. It might lead to more choices for users and better services overall.
