Crypto
The Company Behind the World's Third-Largest Cryptocurrency Just Invested $775 Million in This Little Company Taking on YouTube and AWS | The Motley Fool
Shares of technology company Rumble (RUM -6.39%) are at 52-week highs as of this writing, having jumped roughly 300% in value since lows set back in January. And much of its leap is thanks to a massive $775 million investment from the investment arm of Tether Limited, the company behind the cryptocurrency stablecoin Tether (USDT -0.04%).
Tether is the third-largest cryptocurrency in the world by market capitalization. As of this writing, the market cap is almost $140 billion, which trails only Bitcoin and Ethereum. But Tether isn’t like these other two cryptocurrencies; it’s a stablecoin.
A stablecoin intends to have a 1-to-1 price correlation with something else. For example, a U.S. dollar stablecoin should always be worth $1. It’s for people who want to explore the world of cryptocurrency without the volatility. Simply explained, they deposit $1 and Tether issues one new stablecoin worth $1.
According to Tether, it had about $125 billion in reserves as of Sept. 30 (its market cap was $119 billion at the time). Most of these reserves are in U.S. Treasury bills. It needs to hold these reserves in case people want to redeem their stablecoins for dollars. But Tether is able to make money for itself with these massive reserves in the meantime.
Tether CEO Paolo Ardoino recently said it’s on pace to earn $10 billion in net profit in 2024, which is an astounding amount for any company, let alone a cryptocurrency company. And the company doesn’t simply rake in these profits, but rather it invests its money from time to time, which is what it’s doing with Rumble.
Why the market is excited about Tether’s investment in Rumble
Rumble turned heads when it went public in 2022 because this little company has big ambitions. The company intends to build internet infrastructure that’s free from censorship and it hopes to compete with Alphabet‘s video streaming platform, YouTube; Amazon‘s cloud computing service, AWS; social media platforms; and more.
The problem is that Rumble can’t simply wish all of this into existence — it takes money. And when ambitions are this high, it costs a lot of money to build. Unsurprisingly, the company had a net loss of $116 million in 2023 and has already lost another $102 million in the first three quarters of 2024.
But give Rumble some credit. The chart below shows its outstanding share count with the orange line. Ignore the brief spike shortly after it went public (the accounting of these things can get temporarily distorted upon going public). The chart shows that, to date, management hasn’t been raising money by diluting shareholders with stock offerings. It also hasn’t been taking on debt.
RUM Total Long Term Debt (Quarterly) data by YCharts
To the contrary, Rumble has been funding its growth with cash on hand. And I believe that’s the right move. After all, the company got its cash from its shareholders in the first place. These shareholders expect it to achieve its long-term vision by actually using this cash.
However, Rumble is still burning cash at a fast pace and investors were getting worried about liquidity. The stock consequently skyrocketed when Tether announced its massive investment because the fears regarding liquidity were alleviated.
There are reasons for optimism with Rumble. In the third quarter of 2024, the company had 67 million monthly active users — that’s nothing to sneeze at. Granted, that’s down from its user base of 71 million in the third quarter of 2022. But it’s a large, engaged user base nonetheless.
The challenge has been growing revenue by getting advertisers to buy into Rumble’s potential. As CEO Chris Pavlovski lamented on the Q3 earnings call, “How much longer can brand advertisers ignore more than half the country?”
Rumble does have a premium subscription service that makes up for lack of interest from advertisers. But ad revenue is still important to the company and Pavlovski’s question is an admission that this is an ongoing headwind for the business. And, unfortunately, it’s impossible to know how much longer it will be before advertising demand picks up.
The good news for Rumble’s shareholders is that however long it is, it now has a longer runway than it had before thanks to the infusion of cash from Tether. While there are still a lot of moving pieces here and more details with the transaction that are worth knowing, the main takeaway is that Rumble has more time than it had before. And when it comes to investing, more time is almost always a good thing.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Jon Quast has positions in Ethereum. The Motley Fool has positions in and recommends Alphabet, Amazon, Bitcoin, and Ethereum. The Motley Fool has a disclosure policy.
Crypto
Iran’s Cryptocurrency Toll System Emerges In The Strait Of Hormuz, Posing Economic Chalenges : Analysis | Crowdfund Insider
Iran has introduced mandatory cryptocurrency payments for commercial vessels navigating the Strait of Hormuz. Blockchain analytics firm Chainalysis and blockchain intelligence company TRM Labs have both independently documented the latest scheme, which now represents the first known instance of a nation-state levying transit fees in crypto at a critical global maritime chokepoint.
As highlighted by Chainalysis and TRM Labs in detailed updates, the system, administered by the Islamic Revolutionary Guard Corps (IRGC), took effect in mid-March 2026.
Ship operators must contact an IRGC-linked intermediary, submit comprehensive details—including vessel ownership, flag state, cargo manifests, crew lists, and destination ports—and undergo screening.
Unsurprisingly and as expected, vessels tied to the United States or Israel are barred from passage entirely.
Approved ships negotiate fees based on a five-tier “friendliness” scale, pay in Chinese yuan (via Kunlun Bank’s CIPS system) or cryptocurrency, and receive a VHF-broadcast passcode along with an escorted route through the northern corridor near Larak Island.
Tolls typically range from $0.50 to $1 per barrel of crude oil, with fully loaded very large crude carriers (VLCCs) facing bills of up to $2 million.
Iran’s parliament formalized the arrangement on March 30–31, 2026, through the “Strait of Hormuz Management Plan,” explicitly authorizing payments in rials, yuan, or “digital currencies.”
A dedicated crypto-conversion window on Qeshm Island now handles incoming funds, converting them into local currency or foreign accounts.
Although a rather weak, tentative Pakistan-brokered ceasefire took effect on April 7, 2026, reports indicate the toll regime remains operational.
Analysts highlight the IRGC’s dominant role in Iran’s crypto economy.
The Guard controlled roughly half of the country’s on-chain activity in late 2025, with associated addresses receiving more than $2 billion in 2024 and surpassing $3 billion in 2025—conservative estimates drawn from sanctions designations and seizure records.
While Iranian officials have publicly referenced Bitcoin, industry observers believe stablecoins such as USDT are preferred for their price stability and liquidity, aligning with the IRGC’s long-standing sanctions-evasion strategy.
The economic stakes are enormous. Roughly 20 percent of global oil and liquefied natural gas transits the Strait.
TRM Labs now estimates daily revenue from oil tankers alone could reach $20 million, scaling to $600–800 million monthly when LNG carriers are included.
Iranian sources reportedly project annual collections as high as $120 billion at full capacity.
The initiative extends Iran’s established use of crypto for oil sales, weapons procurement, and proxy financing.
By bypassing traditional banking rails, Tehran potentially reduces exposure to U.S. sanctions enforcement.
However, blockchain transparency offers regulators and stablecoin issuers tools to monitor flows and impose targeted freezes once wallet addresses are identified. But this is only the case with private, permissioned chains and certain stablecoins like USDC or USDT. Other coins may not be frozen so easily if at all.
Shipping companies now face heightened compliance risks, including potential penalties for unlicensed dealings with sanctioned entities. But just how exactly this can continue to be enforced remains unclear due to rapid advancements in digital technology.
This crypto toll “booth” sets a precedent that could inspire other sanctioned states to monetize strategic waterways. And this trend is likely to continue, potentially putting an end to US-led hegemony.
As the IRGC embeds digital currency infrastructure into sovereign revenue streams, the development indicates that nation states may no longer be crippled by international sanctions. Perhaps in the future, it will become very challenging if not impossible to restrict economic transactions between different countries to the rise of permissionless cryptocurrencies.
Kraken Valued at $13 Billion After Deutsche Börse Stake
Deutsche Börse has taken a minority stake in crypto exchange Kraken, marking one of the clearest signs yet of Europe’s largest market operator deepening its exposure to digital assets.
The German exchange group said it invested $200 million in Payward, Kraken’s parent company, securing roughly a 1.5% fully diluted ownership. The transaction values Kraken at about $13.3 billion, according to reporting by Bloomberg.
The move builds on an existing relationship between the two firms and signals a broader push to integrate traditional financial infrastructure with crypto markets. The partnership is expected to focus on regulated offerings, including tokenized assets and derivatives, while improving liquidity for institutional clients.
As part of the collaboration, Kraken will integrate with 360T, Deutsche Börse’s foreign exchange trading platform. The connection is designed to provide Kraken users with access to bank-grade foreign exchange liquidity, potentially streamlining the conversion between fiat currencies and digital assets.
The companies also plan to expand the use of Kraken Embed, a service that allows institutions to offer crypto trading and custody under their own brands. The initiative targets banks, fintech firms, and asset managers seeking to enter the digital asset space without building infrastructure from scratch.
Further developments are expected, subject to regulatory approval. These include enabling trading of derivatives listed on Eurex, Deutsche Börse’s derivatives exchange, through Kraken’s platform.
The investment underscores a growing convergence between established financial institutions and the crypto sector. For Kraken, the backing from Deutsche Börse provides capital and strategic alignment with one of Europe’s most influential financial market operators. For Deutsche Börse, the stake offers a direct foothold in a global crypto platform at a time when competition for digital asset infrastructure is intensifying.
The deal also reflects a broader trend of legacy financial firms moving beyond exploratory partnerships toward equity investments in crypto companies. By combining trading, custody, and tokenization capabilities, both firms are positioning themselves to capture a larger share of institutional flows into digital assets.
Iran’s Cryptocurrency Toll System Emerges In The Strait Of Hormuz, Posing Economic Chalenges : Analysis | Crowdfund Insider
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