Rumble Inc.'s plan to use some of the proceeds from a $775 million investment from cryptocurrency giant Tether to fund a self-tender offer will alleviate investor liquidity concerns, according to analyst firm Oppenheimer.

Shares of Rumble continued to jump 16% on Tuesday after a 81% rally in prior session.

Rumble will use $250 million of the proceeds to support growth initiatives, the right-leaning video platform said in a statement released Friday. The remaining proceeds will fund a self-tender offer for up to 70 million of its Class A common stock at $7.50 per share, the same price as Tether's investment, Rumble added.

The tender provides insiders with an effective diversification without affecting share price, Oppenheimer analyst Jason Helfstein wrote in a note released Sunday. "In our view, [Rumble] selling primary shares at attractive valuation to further bolster balance sheet, without a meaningful change in strategy, should alleviate investor concerns related to liquidity before reaching positive [free cash flow]."

In its third-quarter results last month, Rumble reported its fourth consecutive quarter of reduced cash usage, which it said was 25% less than the prior quarter. As of Sept. 30, 2024, Rumble's cash, cash equivalents and marketable securities totaled approximately $132 million, the company said.

The video platform and cloud-services provider announced Tether's strategic investment after market close on Friday. Rumble's stock is up 43% in premarket trading on Monday, putting it on pace for its largest daily percentage increase on record, based on available data going back to April 12, 2021, Dow Jones Market Data show. The stock is also on pace for its highest close since June 12, 2023, when it closed at $10.94.

In conjunction with Rumble's previously announced plan to purchase up to $20 million of bitcoin, the Tether investment should bolster interest in crypto content and advertising, according to Oppenheimer, which maintained its perform rating for Rumble "ahead of more robust advertising/subscription sales."

"While Tether may collaborate with [Rumble] on 3P cloud offering in the future, nothing was announced as part of this investment," Helfstein added.

The two analysts surveyed by FactSet have a hold rating for Rumble.

Launched in 2014, Tether is a blockchain-enabled platform "designed to facilitate the use of fiat currencies in a digital manner." Tether's cryptocurrency is what is known as a stablecoin.

"Tether's investment in Rumble reflects our shared values of decentralization, independence, transparency, and the fundamental right to free expression," Tether CEO Paolo Ardoino said in Friday's statement. "In today's world, legacy media has increasingly eroded trust, creating an opportunity for platforms like Rumble to offer a credible, uncensored alternative."