Buy Bitcoin, Share Price Up 80%: Rumble Follows ‘MicroStrategy’ Strategy

Rumble Inc. ( RUM ), a video-sharing platform, announced its first Bitcoin (BTC) purchase on Jan. 20 ahead of Donald Trump's inauguration, noting that it “won't be the last” Bitcoin purchase. The company.

The announcement comes nearly two months after Rumble confirmed plans to allocate $20 million from its surplus cash reserves to buy bitcoin. The company stated that their purchase will depend primarily on the BTC price and the platform's cash needs, as well as the broader crypto market situation.

Bitcoin hit a record high of over $109,000 on January 20, shortly before Trump was sworn in as the 47th president of the United States. Some crypto analysts predict that the price will reach $180,000 by the end of 2025.

Table of Contents

Toggle

Rumble stock mirrors micro strategy

The rumble into bitcoin appears to be driven by a combination of financial and strategic factors outlined in the microstrategy playbook, namely using bitcoin as a hedge against inflation and the dollar's collapse.

Microstrategy has accumulated 450,000 BTC as of 2020, which is more than 2% of the total BTC supply. The Nasdaq-listed firm has successfully linked its corporate identity and stock performance to Bitcoin price movements.

That is reflected in the unique bond between them and Bitcoin. Both MicroStrategy and Rumble have significantly outperformed the price of BTC since announcing their Bitcoin acquisition strategies.

To illustrate, MSTR is up nearly 2,650% since buying its first bitcoin in August 2020, outperforming BTC/USD, which has risen over 850% over the same period.

Meanwhile, RUM jumped more than 80% after announcing its plans to acquire Bitcoin in November. Since then, the price of Bitcoin has only increased by 15.50%.

This shows that most investors are willing to pay for MSTR because they expect the company to increase their BTC holdings over time, especially if BTC enters another crash level.

Related: Tether invests $775M in video-sharing platform Rumble

Until now, it has supported the same basic rumble stock. Its CEO, Chris Pawlowski, announced on December 31 that he plans to pay his content creators in Bitcoin, creating more demand for the cryptocurrency.

Publicly traded companies refer to “Bitcoin Reserve”.

After Trump promised to establish a US Bitcoin Reserve, many publicly traded companies decided to add Bitcoin to their balance sheets.

For example, a Nasdaq-listed company, Critical Metals Corp ($CRML), announced a $500 million Bitcoin Treasury plan hours after Rumble's announcement.

Other notable examples include KULR Technology, a firm listed on the New York Stock Exchange, Matador Technologies, a Canadian technology company, and biopharmaceutical company Quantum Bio Pharma, all of which have confirmed purchases of BTC.

Japanese investment firm Metaplanet also made headlines for its biggest Bitcoin purchase ever, acquiring nearly 620 BTC in the past few days.

In addition, MicroStrategy wants to buy an additional $42 billion worth of bitcoins in the coming years.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.