Rumble Launches Crypto Wallet For Creators Amid $775 Million Tether Investment: 'We Want To Take On Google Head On,' Says CEO

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Rumble Inc. RUM beat its revenue estimates, scaling a fresh record in the fourth quarter, and announced the creation of “Rumble Wallet” for its creator community during its earnings call.

What Happened: The online video platform and cloud services operator, Rumble, closed the $775 million investment from Tether USDT/USD in early February, which was announced in December 2024. However, the CEO highlighted four core impacts of this partnership during its earnings call.

One of the core impacts included the development of the first of its kind “Rumble Wallet” with Tether to become a leading media platform within the cryptocurrency community.

The company’s chairman, founder, and CEO, Chris Pavlovski, said that the wallet will include transactions in USD Tether, Tether Gold, and Bitcoin BTC/USD. “We expect this to bring direct value to the crypto community on our platform and facilitate meaningful high-value partnerships with crypto exchanges,” he said.

Meanwhile, the other three impacts listed by Pavlovski included:

  • Utilization of Tether’s global reach to accelerate its international expansion for both its video platform and cloud services.
  • The partnership aims to onboard Tether’s portfolio companies onto Rumble Cloud, significantly expanding its customer base.
  • Tether’s investment strengthens Rumble’s financial position, allowing it to aggressively compete with major tech companies like Alphabet Inc.‘s GOOG GOOGL Google.

“One of the things that we’re very aligned on with the Tether guys is that we want to take on Google head on. And I’ve always wanted to do that. We’ve taken a chip out of YouTube. I think there’s a real opportunity for us to really do something big on the cloud side,” said Pavlovski.

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Why It Matters: Apart from the Tether partnership, Rumble unveiled its Bitcoin treasury strategy in November 2024, to purchase $20 million worth of coins. It added 188 Bitcoin to its treasury at an average price of $91,000 per coin, as per a March 12 press release.

The company also reported average global Monthly Active Users of 68 million in the fourth quarter of 2024, compared to 67 million in the third quarter. The management highlighted a strong post-election user retention in the first quarter, defying typical post-election drop-offs.

According to the company’s release dated Feb. 10, U.S. President Donald Trump also established an official White House channel on the platform.

The company reported a loss per share of $1.15 in the fourth quarter. For the first quarter, Rumble anticipates a minimum of 25% revenue growth compared to the previous year, and with the added financial flexibility from Tether’s investment, it is aiming to reach adjusted EBITDA breakeven in 2025 by strategically accelerating business expansion initiatives.

Price Action: Rumble rose 0.25% on Tuesday and it was down 0.87% in premarket on Wednesday. The stock has fallen 35.24% on a year-to-date basis, whereas it is 6.74% lower over the year.

Benzinga’s Edge Rankings indicate a poor price trend in the short and medium term. While the stock’s Momentum ranking is exceptionally strong, ranking in the 87.31th percentile, it had weak growth and value rankings, the details for which are available here.

Its consensus price target was $13.33, with a ‘buy’ rating, based on the four analysts tracked by Benzinga. The price targets ranged from a low of $8 to a high of $20. The latest ratings from Maxim Group, and Wedbush averaged $12, implying a 49.44% upside.

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