09:55 AM EST, 12/23/2024 (MT Newswires) -- (Updates with recent stock movement in the headline and first paragraph.)

Rumble (RUM) shares were up almost 61% Monday morning after the companies said late Friday that Rumble agreed to a $775 million strategic investment from cryptocurrency firm Tether.

Under the terms, Tether will purchase 103.3 million of Rumble's shares for $7.50 apiece.

The video-sharing platform and cloud services provider plans to use $250 million of the proceeds to support its growth initiatives. It will use the remaining proceeds to fund a self tender offer for up to 70 million of its class A common stock at $7.50 per share.

The investment and the tender offer, which are subject to customary closing conditions, are expected to complete in Q1.

Following completion of the investment, Rumble Chief Executive Chris Pavlovsk will retain his controlling stake in the company.

Price: 11.55, Change: +4.36, Percent Change: +60.64