Rumble Announces Bitcoin Treasury Strategy, Stock Rises

The YouTube competitor is the latest company to join the Bitcoin bandwagon, as its Board of Directors approved a corporate treasury diversification strategy that allocates a portion of its excess cash reserves to BTC.

Video-sharing and cloud services platform Rumble (NASDAQ: RUM) has joined the growing league of corporations embracing Bitcoin (BTC) as a strategic asset, with the company announcing a BTC treasury strategy on Wednesday, April 20.

Rumble stock price surged following the announcement, with the company’s shares closing at $7.31, indicating a 12.63% surge in a single day.

The platform is known for hosting conservative content and personalities, and its entry into the Bitcoin market aligns with a broader trend of corporate adoption.

According to the announcement, Rumble's Board of Directors has approved a corporate treasury diversification strategy that includes allocating a portion of its excess cash reserves to BTC.

As part of this strategy, Rumble plans to purchase up to $20 million in BTC, valuing the cryptocurrency highly in its treasury strategy.

“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 US presidential administration and increased institutional adoption,” Rumble said in a statement.

The company highlighted Bitcoin's unique characteristics, contrasting it with government-issued currencies that can be diluted through money-printing.

"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."

Rumble's management will consider factors such as market conditions, Bitcoin's trading price, and Rumble's cash flow needs to determine the timing and amount of BTC purchases.

The company also noted that the strategy may be modified, paused, or discontinued at any time.

The announcement comes after Rumble CEO and Chairman Chris Pavlovski conducted a poll on X, a platform owned by Elon Musk, asking users whether Rumble should add Bitcoin to its balance sheet.

The poll results showed that over 93% of the 43,790 respondents supported the proposal.

Rumble's decision to allocate a portion of its excess cash reserves to BTC follows a recent trend among corporations.

Earlier this week, MicroStrategy (NASDAQ: MSTR) announced the purchase of an additional 55,000 BTC, bringing its total Bitcoin holdings to $5.4 billion.

This move by the company, led by renowned Bitcoin bull Michael Saylor, aligns with a strategy that has significantly boosted MicroStrategy's stock performance.

In the past year alone, MSTR stock price has surged by more than 670%, outperforming both BTC and the S&P 500 in terms of returns on investment.

Meanwhile, Japanese firm Metaplanet's total Bitcoin holdings crossed the 1,000 BTC mark with its recent purchase.

Moreover, speculations regarding major tech giants, such as Dell and Microsoft, entering the Bitcoin market could further drive demand and propel the asset's price to new highs.

According to a recent analysis by crypto experts, BTC may hit the highly anticipated six-figure price target early next year.

At press time, BTC is trading at $92,071, down by 5.5% over the past 24 hours.