Cryptocurrency company Tether invested $775 million in Rumble (RUM.US), causing the stock price to continue to surge.

Video platform Rumble (RUM.US) continues its upward trend, with shares closing up over 80% on Monday after the company received a $775 million investment from cryptocurrency company Tether. Rumble announced on Friday evening that it will use the proceeds of $250 million in financing to support its growth plans, with the remaining funds used for a self-tender offer to repurchase up to 70 million shares of Class A common stock at the same price as Tether's investment, $7.50 per share. Tether will hold a minority stake in Rumble's issued common stock but will not have the right to appoint any board members. As of 1 pm Eastern Time, over 58.22 million shares of Rumble stock have changed hands, nearly 22 times its 3-month average daily volume. The stock has a short interest ratio of 13.4%. Year-to-date, the company's stock price has nearly doubled, while the S&P 500 index has risen 24%. Due to Rumble's popularity among conservatives, the stock is seen as one of the trades related to a potential return of Donald Trump to the White House. Analyst PropNotes from Seeking Alpha wrote in an article in November that Rumble's "core business of offering paid political content has very low profitability, limiting its attractiveness to advertisers. Given the company's lack of profitability, poor unit economics, and competitive disadvantage, the $1.7 billion valuation is too high." The analyst added, "We like the idea of shorting Rumble stock, although the high short interest presents risks."