Rumble to spend up to 20 million dollars in Bitcoin with the new treasury strategy
YouTube alternative Rumble has become the latest company to confirm plans to add bitcoin to its balance sheet, days after its CEO teased the idea on social media.
In a statement on November 25, the video-sharing platform's board of directors approved the strategy, allocating a portion of the company's surplus funds at the company's discretion and up to $20 million in total to Bitcoin (BTC).
Rumble Chairman and CEO Chris Pawlowski scoffed at the idea of adding bitcoin to Rumble's account in an X poll on November 19. Out of 43,790 votes, 93.9% of respondents voted yes to the proposal.
According to Rumble, the date of the first Bitcoin purchase “will be determined by the administrator at his discretion and will depend on many factors” such as the state of the broader crypto market, the price of Bitcoin and the platform's financial needs.
Source: Chris Pavlovski
“We believe that the adoption of Bitcoin in the world, accelerated with the recent election of a crypto-friendly US presidential administration and increasing institutional adoption, is still in the early stages,” Pavlovski said.
“Unlike any government-issued currency, Bitcoin is not subject to dilution through endless money-printing, which is a useful inflation hedge and an excellent addition to our treasury”.
Rumble states that the allocation process may be suspended, terminated or modified for any reason.
However, the company emphasized that the move “recognizes Bitcoin as a valuable tool for strategic planning and is designed to accelerate the company's expansion into cryptocurrency.”
During the same trading session, Rumble (RUM) shares rose 12.63% to $7.31, according to Google Finance.
In the after-hours trading session, the stock continued to rise another 5.47% to $7.71.
Shares of Rumble have gained a total of 18.10% in the past 24 hours, to $7.71. Source: Google Finance
Rumble is a video sharing platform with approximately 67 million monthly active users and is known for having a more lenient approach to content moderation than other similar services.
Companies continue to explore adding Bitcoin to their balance sheets.
Rumble joins a growing list of other firms that have added bitcoin to their balance sheets this year.
According to MicroStrategy portfolio tracker Saylor Tracker, Michael Saylor's MicroStrategy holds 331,200 bitcoins, worth roughly $36 billion.
Bitcoin mining company MARA Holdings, formerly Marathon Digital, shared in a Nov. 18 news release that it was offering $700 million in convertible senior notes in part to acquire more bitcoins.
RELATED: MicroStrategy Buys $4.6B Bitcoin As Price Nears All-Time High
On November 18, technology solutions provider Semler Scientific announced that it acquired an additional 215 Bitcoins for $17.7 million in cash between November 6 and 15, increasing its total holdings to 1,273.
Artificial intelligence firm Genius Group took action on November 18 by buying 110 bitcoins for $10 million.
Update (November 26 at 1 am UTC): This article has been updated with more background on Rumble's announcement and other companies that have recently accepted Bitcoin.
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