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Video-sharing platform Rumble has made headlines with its bold move into cryptocurrency. On November 25, the company announced its decision to allocate a significant portion of its corporate treasury to Bitcoin (BTC). This strategy mirrors the path taken by tech pioneers like MicroStrategy, signaling growing institutional confidence in Bitcoin as a long-term asset.
As part of its corporate treasury diversification strategy, Rumble plans to invest up to $20 million in Bitcoin. The purchases will be made at the company's discretion, showcasing a strategic approach to entering the volatile cryptocurrency market.
Rumble Chairman and CEO Chris Pavlovski expressed the company’s strong belief in Bitcoin's future. “We believe that the world is still in the early stages of Bitcoin adoption, which has recently accelerated with the election of a crypto-friendly U.S. presidential administration and increased institutional adoption,” Pavlovski said.
He highlighted Bitcoin’s unique value as a hedge against inflation, contrasting it with traditional currencies that are vulnerable to dilution through excessive money printing. By adding Bitcoin to its treasury, Rumble aims to protect its reserves and align with forward-thinking financial practices.
Following the announcement, Rumble’s stock (RUM) surged 13%, reaching $7.31 before climbing an additional 4% in after-hours trading. This immediate market response underscores investor confidence in Rumble’s decision to embrace Bitcoin as a strategic asset.
Rumble’s move is not dissimilar to MicroStrategy’s pioneering Bitcoin approach. Headed by Michael Saylor, MicroStrategy has recently purchased a total of 55,500 bitcoins meaning that this company has become the largest corporate owner of bitcoins in the world with 386,700 bitcoins.
This is not unique to MicroStrategy as Marathon Digital(MARA) and Semler Scientific both purchased more bitcoins in Q2 2021. For instance, Semler purchased 215 BTC for 17000 Bitcoin costing an Average of $17.7 million, which took its Bitcoin balance to 1273. Chief executive officer of artificial intelligence firm Genius Group, Heng-break Siok Lim bought 110 bitcoins for $10m to make up to 90% reserve of the company where Bitcoin was reserved.
The $20 million investment by Rumble shows that more corporations are buying bitcoins, converting the cryptocurrency to a treasury staple. Given that it can act as an inflation tool and slowly gaining recognition, Bitcoin is still part of the modern’s day investment portfolios.
As more and more corporations decide to emulate MicroStrategy’s decision of Bitcoin acquisitions more such firms as Rumble are expected to join in thereby expanding the use of Bitcoin as a corporate asset and putting it even more in the global financial mix.
