Rumble Joins MicroStrategy and Other Companies in Adopting Bitcoin Strategy to Hedge against Fiat Devaluations

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As a seasoned analyst with over two decades of experience in the financial markets under my belt, I must say that Rumble Inc’s decision to allocate a portion of its excess cash reserves to Bitcoin is a bold and strategic move. Having witnessed the meteoric rise of cryptocurrencies, particularly Bitcoin, I can see the potential long-term growth prospects for Rumble as they venture into this space.

Rumble Inc, a rapidly expanding video-sharing platform and cloud services provider based in Florida (NASDAQ: RUM), has declared its intent to embrace Bitcoin. As stated in a press release on Monday, the company plans to set aside some of its surplus cash holdings for investment in Bitcoin.

The board of directors at Rumble has given the go-ahead for the company to venture into the cryptocurrency market sector. Significantly, this move involves purchasing Bitcoin in amounts that could reach up to $20 million, contingent upon market conditions.

According to Rumble’s Chairman and CEO, Chris Pavlovski, it is his belief that we are in the initial stages of Bitcoin adoption, with its growth speeding up due to the election of a pro-crypto US administration and greater institutional acceptance. Unlike traditional currencies issued by governments, Bitcoin is not susceptible to devaluation through continuous money printing, making it a valuable safeguard against inflation and an advantageous asset for our treasury.

Impact of Bitcoin Strategy on Rumble

Choosing to incorporate Bitcoin into its long-term financial strategy, Rumble expects this move could significantly impact their future expansion. With a market capitalization of approximately $2.85 billion, the company’s stocks have experienced a surge over 62 percent in value due to anticipation surrounding Bitcoin integration on their balance sheet.

As a crypto investor, I’m excited about the upcoming plan that’s expected to take effect soon. This development seems poised to fuel a surge in the company’s stock market, mirroring the ongoing Bitcoin rally. Over the past five days, I’ve noticed RUM stock skyrocketing by over 28 percent, reaching approximately $7.6 on Tuesday. The momentum is promising!

Other companies such as MicroStrategy Inc (NASDAQ: MSTR), Semler Scientific Inc. (NASDAQ: SMLR), Hut 8 Corp. (NASDAQ: HUT), and Metaplanet Inc have also implemented a similar strategy. As Coinspeaker pointed out, the stock of MicroStrategy (MSTR) has surged alongside Bitcoin’s recent exponential growth, which was boosted by President-elect Donald Trump’s victory and other influential figures in the crypto sector.

On Monday, MicroStrategy announced the acquisition of 55.5K Bitcoins, thus currently holding over 386.7K BTC units. Semler Scientific announced the acquisition of 297 BTCs, worth over $29 million, thus holding more than 1,570 BTCs.

As an analyst, I’m sharing some recent developments. Yesterday, I learned that Hut 8 has disclosed they currently possess approximately 9,100 Bitcoins in their reserves, with intentions to expand this number further in the coming days.

Market Picture

Recently, significant numbers of institutional investors have been adopting Bitcoin, which has led to a substantial decrease in the amount of Bitcoin available on centralized exchanges. As per the most recent market statistics from CoinGlass, the supply of Bitcoin on these exchanges has reached a low not seen in several years, falling below 2.3 million over the past few months.

As a result, it’s expected that the price of Bitcoin will carry on rising during its long-term upward trend, even though there might be some short-term adjustments. Notably, Gold ETFs have been losing ground to Bitcoin ETFs recently due to increased adoption by countries.

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2024-11-26 12:53