Rumble Allocates Up to $20 Million for Bitcoin Purchases
Rumble Inc (NASDAQ: RUM), a video-sharing platform and cloud services provider, is moving toward Bitcoin adoption. The Florida-based company plans to allocate part of its excess cash reserves to Bitcoin, with potential purchases up to $20 million based on market conditions.
The board of directors approved this strategic shift into the crypto market. Rumble Chairman and CEO Chris Pavlovski stated that the world is in the early stages of Bitcoin adoption, accelerated by a crypto-friendly US presidential administration and increased institutional interest. He emphasized that Bitcoin serves as an inflation hedge due to its resistance to dilution from money-printing.
Impact of Bitcoin Strategy on Rumble
Integrating Bitcoin into its treasury could significantly impact Rumble's long-term growth. The company's valuation has risen over 62 percent amid speculation regarding Bitcoin’s role in its financial strategy. Recently, RUM stock surged over 28 percent, reaching approximately $7.6.
Other companies, such as MicroStrategy Inc (NASDAQ: MSTR), Semler Scientific Inc. (NASDAQ: SMLR), Hut 8 Corp. (NASDAQ: HUT), and Metaplanet Inc., have adopted similar strategies. MicroStrategy recently acquired 55.5K Bitcoins, increasing its holdings to over 386.7K BTC units. Semler Scientific reported acquiring 297 BTCs, totaling more than 1,570 BTCs, while Hut 8 holds 9.1K Bitcoins and plans further acquisitions.
Market Picture
Institutional adoption of Bitcoin has led to a significant decrease in BTC supply on centralized exchanges, which now sits below 2.3 million. This reduction positions Bitcoin for continued macro bullish trends despite short-term corrections. Additionally, there has been a shift from Gold ETFs to Bitcoin ETFs amid rising adoption by nation-states.