Rumble (RUM) Stock Rallies as Tether Expands Investment and Crypto Partnership

TLDR

• Tether purchased over 1 million additional Rumble shares last week, increasing its ownership stake in the video platform company
• The partnership expansion includes integration of Bitcoin and USDT payment features directly on Rumble’s platform
• Tether will support Rumble’s investments in GPU infrastructure and crypto wallet expansion efforts
• Rumble projects $194.3 million in revenue and $21.4 million in earnings by 2028, requiring 23.1% annual revenue growth
• Community fair value estimates for Rumble range widely from $1.50 to $22 per share

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Tether made a big move last week by adding over 1 million shares to its Rumble holdings. The stablecoin issuer isn’t just buying more stock though.

Rumble Inc., RUM

The two companies expanded their partnership to bring Bitcoin and USDT features directly to Rumble’s platform. This marks a deeper commitment from Tether to the video platform’s growth strategy.

The partnership goes beyond simple payment integration. Tether plans to help fund Rumble’s GPU investments for high-performance computing and AI initiatives.

These investments tie directly into Rumble’s launch of Rumble Wallet. The company sees this crypto payment feature as a key driver for user growth and revenue expansion.

Rumble needs the capital backing. The company is still posting operating losses while pursuing its growth plans.

Revenue Projections and Growth Targets

Rumble forecasts $194.3 million in revenue by 2028. That requires maintaining 23.1% annual revenue growth over the next few years.

The earnings picture is more dramatic. Rumble projects $21.4 million in earnings by 2028, which would represent a $322.6 million swing from its current loss of $301.2 million.

These targets depend heavily on successful adoption of Rumble Wallet for global crypto payments. Without strong user growth, the financial projections become harder to justify.

The stock jumped 24.3% following the Tether announcement. Investors clearly see value in the expanded partnership and additional capital support.

Valuation Questions Remain

Community fair value estimates for Rumble vary wildly. Some analyses put the stock at just $1.50 per share while others see it reaching $22.

One projection suggests a fair value of $15.50, which would represent 129% upside from current levels. These wide-ranging estimates reflect uncertainty about Rumble’s ability to execute its growth plans.

The core risks haven’t changed. Rumble faces ongoing operational losses while competing in a crowded creator platform market.

Regulatory challenges around crypto integration add another layer of uncertainty. The company’s diversification strategy depends on navigating these issues successfully.

Tether’s deeper involvement provides both capital and credibility. The stablecoin issuer’s support could help accelerate GPU infrastructure buildout and wallet development.

The timing aligns with broader interest in crypto payment solutions. Rumble is betting that creators and users want alternatives to traditional payment systems.

Investors now have more clarity on Rumble’s funding path. Tether’s stake increase and operational support address some near-term capital questions.

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