Key Takeaways
- Rumble is expanding its investment strategy to include Bitcoin.
- The company views Bitcoin as a valuable tool for hedging against inflation.
- Rumble’s move aligns with those of other companies, such as MicroStrategy and MARA, which have adopted Bitcoin as a treasury asset.
The Bitcoin (BTC) bull run continues, with Rumble, the video-sharing platform, becoming the latest company to show interest in the asset.
Following in the footsteps of tech giants like MicroStrategy, Rumble plans to allocate a significant portion of its treasury to BTC.
Rumble Joins Bitcoin Race
On Monday, Nov. 25, the company announced it approved a corporate treasury diversification strategy that allocates a portion of its excess cash reserves to Bitcoin.
As part of this strategy, Rumble plans to invest up to $20 million in BTC, with purchases made at the company’s discretion.
Rumble Chairman and CEO Chris Pavlovski said, “We believe that the world is still in the early stages of the adoption of Bitcoin, which has recently accelerated with the election of a crypto-friendly U.S. presidential administration and increased institutional adoption.”
“Unlike any government-issued currency, Bitcoin is not subject to dilution through endless money-printing, enabling it to be a valuable inflation hedge and an excellent addition to our treasury,” he added.
Following the announcement, the Rumble stock — trading under the RUM ticker — increased by 13% to $7.31 and gained a further 4% to $7.30 after trading hours.
Copying MicroStrategy
Rumble’s recent decision to accumulate Bitcoin places the platform alongside a growing number of companies joining the race to bolster their crypto holdings.
At the forefront of this movement is MicroStrategy, the largest corporate holder of Bitcoin.
The company, led by Michael Saylor, recently added 55,500 BTC to its balance sheet, bringing its total holdings to a staggering 386,700 BTC.
This move has significantly contributed to the company’s impressive quarterly and year-to-date Bitcoin yields of 35.2% and 59.3%, respectively.
Rounding out this trend, Bitcoin mining firm MARA (formerly Marathon Digital) has announced it is offering $700 million in convertible senior notes, part of which will be used to fund additional Bitcoin purchases.
Meanwhile, Semler Scientific, a tech solutions provider, disclosed the acquisition of 215 BTC for $17.7 million between Nov. 6 and 15. This latest purchase has increased its total Bitcoin holdings to 1,273 BTC.
Artificial intelligence firm Genius Group also made waves, revealing it had purchased 110 BTC for $10 million. The company plans to allocate up to 90% of its reserves to Bitcoin in the future.
Giuseppe Ciccomascolo began his career as an investigative journalist in Italy, where he contributed to both local and national newspapers, focusing on various financial sectors.
Upon relocating to London, he worked as an analyst for Fitch's CapitalStructure and later as a Senior Reporter for Alliance News. In 2017, Giuseppe transitioned to covering cryptocurrency-related news, producing documentaries and articles on Bitcoin and other emerging digital currencies. He also played a pivotal role in establishing the academy for a cryptocurrency exchange website. Crypto remained his primary area of interest throughout his tenure as a writer for ThirdFloor.
