Rumble Makes First Bitcoin Purchase for Corporate Treasury
Rumble, a leading video-sharing platform based in Canada, has officially made its first Bitcoin purchase since adopting the flagship cryptocurrency as a strategic corporate reserve to combat inflation and economic uncertainty.
On Monday, the company’s CEO, Chris Pavlovski, disclosed that Rumble acquired an undisclosed amount of BTC on Friday, January 17, and intends to continue purchasing more in the future. While Pavlovski did not reveal the exact amount, a Cointelegraph report suggested the company invested up to $20 million in BTC.
On Friday, Rumble $RUM made its first ever purchase of Bitcoin $BTC.
It won’t be the last.
— Chris Pavlovski 🏴☠️ (@chrispavlovski) January 20, 2025
Rumble’s Bitcoin Strategy and Adoption
When the company first announced its intention to join corporate firms like MicroStrategy, Metaplanet, and India’s Jetking Infotrain in adding Bitcoin to their balance sheets, it stated that it would purchase up to $20 million worth of the crypto asset.
Rumble said the move aligns with its broader efforts to expand into the crypto economy. The company views Bitcoin as more than just a store of value, describing it as a “valuable tool for strategic planning.”
“We believe that the world is still in the early stages of Bitcoin adoption, which has recently accelerated with the election of a crypto-friendly US presidential administration and increased institutional adoption. Unlike any government-issued currency, Bitcoin is not subject to dilution through endless money printing, making it a valuable inflation hedge and an excellent addition to our treasury,” Pavlovski stated.
Rumble also emphasized that any Bitcoin acquisitions would be subject to managerial approval. Additionally, the firm considered other factors, such as general market and business conditions, Bitcoin’s trading price, and Rumble’s anticipated cash needs.
Market Impact and Rumble’s Business Growth
As a leading video-sharing platform, Rumble commands a market valuation of $3.6 billion. It also boasts over 50 million users.
Buoyed by the news of its Bitcoin acquisition, the company’s shares (RUM) rose nearly 6%, according to Google Finance data. Over the past year, Rumble’s stock has recorded an impressive 253% growth, ending December 2024 on a strong note.
According to a Yahoo Finance report, this substantial growth can be attributed to several factors, including “strong audience monetization growth, particularly through increased Rumble Premium subscriptions and higher revenues from its Rumble Advertising Center, alongside a significant surge in user engagement driven by the US presidential election.”
In Q3 2024, Rumble reported strong growth in monthly active users (MAUs), reaching 67 million, which has further driven its monetization efforts.
Beyond financial performance, the company has expanded its business offerings to position itself for further growth. In November 2024, Rumble announced the expansion of its cloud infrastructure with major clients, reinforcing its commitment to scaling its operations.
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2025-01-20 20:03