Rumble Stock Soars 44% Pre-Market: Crypto Meets Free Speech — Game-Changer Or Hype?

Rumble Inc. RUM is soaring, with shares jumping 44% pre-market after a $775 million investment from Tether USDT/USD.

Tether's Investment Boosts Rumble's Pre-Market Surge

The deal involves Tether purchasing 103.33 million shares of Rumble Class A common stock at $7.50 per share, totaling $775 million in gross proceeds. This deal marks a bold move in a sector where cryptocurrency and free speech often collide.

Rumble plans to use $250 million of the proceeds for growth initiatives, aiming to strengthen its position in the free speech video-sharing space. The remainder of the funds will be used for a self-tender offer, buying back up to 70 million shares at the same price of $7.50 each.

CEO Chris Pavlovski emphasized the alignment between crypto and free speech.

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Rumble + Tether = Strong Partnership, Shared Values

Both Rumble and Tether share a commitment to decentralization, transparency, and free expression. Tether CEO Paolo Ardoino pointed out the increasing erosion of trust in legacy media, positioning platforms like Rumble as credible, uncensored alternatives.

These shared values create a solid foundation for the partnership, which could transform how alternative content platforms engage with users and creators alike, he said.

Rumble Stock Signals Bullish, But Watch That RSI

Rumble stock is surging, fueled by the Tether investment. Its technical indicators are strongly bullish, with cautionary signs present.

Chart created using Benzinga Pro

Rumble stock, at $10.32, is way above its eight-day and 20-day Simple Moving Averages (SMAs) of $8.17 and $7.76, suggesting a short-term bullish momentum. Rumble stock's 50-day and 200-day SMAs at $6.68 and $6.37 further reinforce the bullish signal in the medium to long term.

Further support for the bullish case is provided by a favorable MACD indicator of 0.53.

However, Rumble stock's Relative Strength Index sits in overbought territory at 71.96, signaling the potential for a pullback or price correction in the short term.

A Bold Bet For The Future Of Content

While the overbought RSI may suggest caution, momentum indicators and moving averages support a bullish outlook for Rumble stock. Tether's investment and Rumble's growth plans could further make this partnership one to watch.

With Rumble poised to capitalize on its newfound resources, investors may want to look beyond short-term volatility and focus on long-term growth.

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