Rumble, the popular online streaming and video platform, announced that its Board of Directors has approved a plan to diversify the company’s treasury by allocating a portion of its surplus cash into Bitcoin.
As part of this new strategy, the company plans to invest up to $20 million in BTC, with purchases made at its discretion.
Rumble Approves Bitcoin Investment Strategy
According to the official press release, Rumble said that this move demonstrates the company’s belief in Bitcoin as a valuable tool for strategic planning and is expected to accelerate the platform’s expansion into cryptocurrency.
Chris Pavlovski, CEO and chairman of Rumble, cited the increasing institutional adoption of Bitcoin and a “crypto-friendly” US presidential administration as significant reasons behind the latest decision. The exec added,
“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. We are also excited to strengthen our ties with crypto and to bolster our efforts to become the leading video and cloud services platform for the crypto community.
Rumble said that the timing and amount of Bitcoin purchases under the strategy will be determined by its management. This will depend on several factors such as market conditions, the price of Bitcoin, and the company’s future cash requirements. The allocation strategy is subject to change, suspension, or termination at management’s discretion for any reason.
Following the development, Rumble’s stock price surged more than 12% over the past day, according to Google Finance data.
Amid the post-Donald Trump presidential victory market rally, several businesses have opted to invest in Bitcoin. The firm is now part of the growing trend of companies incorporating Bitcoin into their corporate treasury strategies.
Growing Trend of Institutional Adoption
Wellness and plant-based e-commerce firm Jiva Technologies too joined the trend after receiving approval from its board of directors for a Bitcoin investment strategy worth up to $1 million. In a similar sentiment to Rumble’s CEO, Jiva’s CEO, Lorne Rapkin, highlighted the potential for a favorable regulatory landscape and increased institutional adoption as key factors in the decision.
In the last ten days, two companies made similar moves. Biopharmaceutical company Hoth Therapeutics allocated up to $1 million in Bitcoin, stating the cryptocurrency’s “inflation-resistant” properties. AI firm Genius Group also followed suit, investing $10 million to purchase 110 BTC for its treasury reserves.
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