Update (Nov. 26 at 1 am UTC)
This article has been updated with more background on Rumble’s announcement and other companies that have recently adopted Bitcoin.
YouTube Alternative Rumble Embraces Bitcoin, Allocates Up to $20 Million
Rumble, a video-sharing platform with over 67 million monthly active users, has become the latest company to confirm plans to add Bitcoin (BTC) to its balance sheet. This move comes just days after its CEO teased the idea on social media.
Background and Context
In a statement released on November 25, Rumble’s board of directors approved the strategy to allocate a portion of the company’s excess cash reserves to Bitcoin at the discretion of the management, up to $20 million in total. This decision marks another significant step towards mainstream adoption of cryptocurrency among companies.
CEO Chris Pavlovski’s Thoughts on Adding Bitcoin
Rumble Chairman and CEO Chris Pavlovski first teased the idea of adding Bitcoin to Rumble’s balance sheets with a November 19 poll on X. Out of 43,790 votes, an overwhelming 93.9% of respondents voted in favor of the proposal.
According to Rumble, the date for its first Bitcoin purchase will be determined by management in their discretion and will depend on various factors such as the wider crypto market conditions, price of Bitcoin, and cash needs of the platform.
"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," Pavlovski said.
"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," he added.
Allocation Strategy and Conditions
Rumble emphasized that the allocation strategy can be suspended, discontinued, or modified at any time for any reason. However, the company stressed that this move reflects its belief in Bitcoin as a valuable tool for strategic planning and is designed to accelerate the company’s expansion into cryptocurrency.
During the same trading session as the announcement, Rumble (RUM) shares spiked 12.63% to $7.31, according to Google Finance. In the after-hours trading session, the stock continued to climb another 5.47% to $7.71. Rumble shares have risen a total of 18.10% in the last 24 hours, climbing to $7.71.
Firms Exploring Bitcoin Adoption
Rumble joins the growing list of other firms that have taken the plunge and added Bitcoin to their balance sheets this year. Some notable examples include:
- MicroStrategy: Michael Saylor’s company has acquired over 331,200 Bitcoin, worth approximately $36 billion, according to MicroStrategy’s Portfolio Tracker, Saylor Tracker.
- MARA Holdings (formerly Marathon Digital): The Bitcoin mining firm announced plans to raise $700 million in convertible senior notes, part of which will be used to acquire more Bitcoin.
- Semler Scientific: On November 18, the tech solution provider revealed that it had acquired an additional 215 Bitcoin for $17.7 million in cash between November 6 and 15, increasing its total holdings to 1,273.
- Genius Group: The artificial intelligence firm purchased 110 Bitcoin for $10 million on November 18, with plans to have its reserves hold up to 90% Bitcoin in the future.
Related Developments
The recent adoption of Bitcoin by various companies reflects a growing trend towards mainstream acceptance of cryptocurrency. This shift is likely driven by factors such as increased institutional investment and improved market conditions.
The addition of Bitcoin to Rumble’s balance sheet marks another significant milestone in this journey. As more companies continue to explore the benefits of cryptocurrency, it will be interesting to see how this trend unfolds in the coming months.
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