- Rumble approves $20M Bitcoin investment for treasury diversification.
- The CEO highlights early-stage acceptance and a crypto-friendly US administration.
Video-sharing site Rumble, which tends to attract conservative audiences, is going all-in for a big financial bet and entry into cryptocurrencies. Over the weekend, the Board of Directors approved having up to $20 million from its cash reserves invested in Bitcoin. The mere fact bears testimony to how confident Rumble feels that Bitcoin would fare better than a hedge against inflationary risks in the long run.
Bitcoin is the future game changer, still at its early adoption stage, and more importantly, in the decentralized manner that makes it attractive for future asset acquisition, according to Rumble CEO Chris Pavlovski. In addition, Bitcoin’s resistance to inflation, which is controlled by government units, presents an appropriate facilitator for our long-term goals of financial planning.
Rumble joins corporate Crypto wave amid political backing
This decision aligns with the trend in corporate adoption of Bitcoin, including companies such as MicroStrategy and MARA Holdings. This decision comes at a time when former President Donald Trump advocated for Bitcoin and laid out a strategy on making the U.S. a crypto capital after 2025.
Although the Board has approved the plan, Rumble has not chosen its first Bitcoin buy timing and volume. Management will consider the then-prevailing market conditions and Bitcoin price to implement the investment.
This step further signals towards digital assets within corporate treasuries as companies are looking forward to diversifying their reserve as a buffer against economic uncertainty.
It seems like the announcement from Rumble lit the match for investors, as the company’s stock (RUM) skyrocketed 12.63% in regular trading hours, closing at $7.31 and traded higher, 5.47%, to $7.71 in after-hours.
The entry of Rumble into the Bitcoin market is another indication that cryptocurrencies are gaining better traction in traditional financial planning. Since there is growing institutional interest in digital assets, the investment of Rumble in Bitcoin puts the cryptocurrency on an even stronger pedestal for corporations globally.
