Rumble Acquires Bitcoin as Part of Corporate Treasury Strategy
Rumble, a Canadian video-sharing platform, has made its first purchase of Bitcoin as part of its corporate strategy to combat inflation and economic uncertainty. CEO Chris Pavlovski announced the acquisition occurred on January 17, with speculation suggesting an investment of up to $20 million.
Key Points on Rumble’s Bitcoin Strategy
- Rumble aims to join companies like MicroStrategy in adding Bitcoin to their balance sheets.
- The firm views Bitcoin as a strategic planning tool, not just a store of value.
- Future acquisitions will depend on managerial approval and market conditions.
Pavlovski noted that Bitcoin is a valuable inflation hedge due to its resistance to dilution from money printing.
Market Impact and Business Growth
- Rumble's market valuation is $3.6 billion, with over 50 million users.
- Following the Bitcoin news, Rumble's shares (RUM) increased nearly 6%.
- Rumble's stock has grown 253% over the past year.
- Strong growth attributed to audience monetization and user engagement related to the US presidential election.
- Q3 2024 saw monthly active users rise to 67 million.
- The company expanded its cloud infrastructure with major clients in November 2024.