Rumble Moves To Sell 103.3M In Stock, Paving Exit For Tether: Retail Sentiment Stays Weak

Rumble Inc. (RUM) could draw significant retail investor attention after it filed with the SEC on Friday for the potential sale of up to 103.33 million shares by Tether (USDT.X).

The filing follows Tether's $775 million strategic investment in the conservative video-sharing platform, first announced in December and finalized in early February. Tether purchased 103.33 million shares at $7.50 per share as part of the deal.

Rumble had confirmed it would use $250 million of the net proceeds to fund growth initiatives.

In the S-3 registration filed with the SEC on Friday Rumble said the proposed sale was to satisfy its obligations to facilitate the resale of securities held by Tether and also to provide the latter with certain customary “demand and piggyback registration rights.”

Rumble will not receive any proceeds from Tether's sale of its common stock but will incur expenses related to the offering.

The news per se may not be construed as negative, given that the market may have factored it in. 

On Stocktwits, retail sentiment toward Rumble stock remained ‘negative’ (27/100) and the message volume remained ‘low.’

Much of the discussions around the stock on the Stocktwits stream surrounded President Donald Trump’s inner circle owning the stock.

Separately, Rumble is in a dispute with Brazil after suspending its service in the country for refusing to block the account of a Brazilian streamer living in the U.S. The streamer is under investigation for allegedly spreading hate speech and false information.

Following a suspension order from Brazilian Supreme Court judge Alexandre de Moraes, Rumble and Trump Media & Technology Group Corp. (DJT) filed a lawsuit against the judge in the U.S. District Court in Tampa, alleging illegal censorship.

Rumble stock fell 5.58% on Friday before closing at $10.50 amid the market sell-off and lost an incremental 0.29% in the after-hours session. The stock has lost about 20% so far this year. It has traded in a 52-week range of $4.92 to $17.49.

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