Bitcoin News Update: Tether’s $5.7 Million Investment Shows Support for Rumble’s Shift Toward Crypto-Based Cloud Services
- Tether boosted its Rumble stake by $5.7M, buying 1.06M shares to signal confidence in the firm's cloud-crypto integration strategy. - The investment follows Rumble's Northern Data AG acquisition, expanding its GPU capacity and data centers for crypto infrastructure growth. - Tether agreed to $250M in GPU purchases and advertising, while Rumble's Bitcoin tipping features and $18.5M BTC reserves reinforce crypto alignment. - Rumble's stock surged 13% amid market optimism, though analysts maintain a "Hold"
Shares of Rumble Inc. jumped over 13% on Monday after stablecoin leader
This development came after Rumble announced an updated deal to acquire Northern Data AG, a German company specializing in data centers, which will add 22,000
Rumble's stock, currently trading at $6.51, has experienced significant swings this year, losing nearly half its value since January despite a reduced third-quarter net loss of $16.3 million. The company posted $24.8 million in revenue for the quarter, slightly missing analyst expectations, but pointed to operational improvements ahead of the U.S. election season
This investment highlights Tether's expanding role in shaping Rumble's business direction. Giancarlo Devasini, who owns more than half of Tether Holdings, is now Rumble's largest shareholder through Tether Investments. Tether's earlier $775 million investment in 2024, which secured over 103 million shares, had already made it a major force in Rumble's growth
The partnership between Rumble and Tether goes beyond funding. Together, they have introduced crypto tipping, enabling users to reward creators with Bitcoin and Tether's
The stock's current performance stands in contrast to its early 2025 high of $17.40, as investors assess Rumble's evolution from a video platform to a company focused on both cloud and crypto infrastructure. While analysts continue to rate the stock as "Hold" with an average price target of $14, the acquisition of Northern Data and Tether's continued backing could spark renewed interest from investors
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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