Video-sharing platform Rumble has revealed plans to diversify its corporate treasury by investing up to $20 million in Bitcoin. The decision, approved by the company’s Board of Directors, marks a significant step toward aligning with the cryptocurrency community.
Strengthening Ties with the Crypto World
Rumble’s CEO and Chairman, Chris Pavlovski, first hinted at this move through a poll conducted on X (formerly Twitter) on November 19. The poll garnered 43,790 votes, with an overwhelming 93.9% support for adding Bitcoin to Rumble’s balance sheet.
Pavlovski commented on the decision, emphasizing Bitcoin’s distinct advantages:
“We believe the world is still in the early stages of Bitcoin adoption, which has accelerated with a crypto-friendly U.S. administration and growing institutional interest. Unlike fiat currencies, Bitcoin is immune to inflationary pressures caused by government money-printing, making it a valuable hedge.”
Flexible Bitcoin Acquisition Strategy
Rumble’s Bitcoin strategy provides flexibility, allowing the company to make purchases based on market conditions and internal cash flow requirements. Key factors influencing acquisition timing include:
- Bitcoin price trends
- Rumble’s financial needs
The strategy also allows for modification or suspension at any time, demonstrating prudent risk management.
Growing Trend of Bitcoin Treasury Holdings
Rumble joins a growing list of companies adopting Bitcoin as part of their treasury strategy in 2024:
- MicroStrategy:
The industry leader in Bitcoin adoption, Michael Saylor’s MicroStrategy, holds 331,200 BTC worth approximately $36 billion, setting the benchmark for corporate Bitcoin reserves. - MARA Holdings (formerly Marathon Digital):
On November 18, the Bitcoin mining giant announced plans to raise $700 million through convertible senior notes to acquire additional Bitcoin holdings.
Bitcoin Adoption on the Rise
Rumble’s move underscores a broader trend of corporate Bitcoin adoption, driven by:
- Increased institutional interest
- Favorable U.S. regulatory landscape under a crypto-friendly administration
- Rising confidence in Bitcoin as a hedge against inflation and economic uncertainties
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