Rumble allocates up to $20M of its treasury to Bitcoin, citing its potential as a strategic asset and inflation hedge in the face of a growing adoption.
Rumble, a video-sharing and cloud services company, has announced plans to allocate up to $20 million of its corporate treasury into Bitcoin.
This decision, approved by its Board of Directors, reflects the company’s efforts to diversify its cash reserves and strengthen its involvement in the cryptocurrency space.
Rumble Commits to Bitcoin With $20M Treasury Plan
In a recent announcement, Rumble shared its intention to invest up to $20 million of its surplus cash into Bitcoin as part of a strategy to diversify its treasury.
The company believes this initiative will enhance its financial agility and position it advantageously within the expanding cryptocurrency ecosystem.
Rumble emphasized Bitcoin’s role as a hedge against inflation, citing its immunity to dilution from excessive money printing.
The company also noted that increasing institutional interest and favorable regulatory developments have driven Bitcoin’s integration into corporate financial strategies.
CEO Chris Pavlovski remarked,
“We believe that the world is still in the early stages of the adoption of Bitcoin, which has recently accelerated with the election of a crypto-friendly U.S. presidential administration and increased institutional adoption. Unlike any government-issued currency, 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.”
The timing and extent of Rumble’s Bitcoin acquisitions will depend on factors like market conditions, Bitcoin’s price, and the company’s cash flow needs.
Management will retain discretion over purchases to balance market volatility with Bitcoin’s long-term potential, ensuring alignment with Rumble’s financial objectives.
Growing Corporate Adoption of Bitcoin
The trend of companies adopting Bitcoin for their treasuries is gaining momentum as firms recognize its utility as both a hedge against inflation and a tool for financial diversification.
Notable players such as Tesla and MicroStrategy and governments like Bhutan and El Salvador have integrated Bitcoin into their financial strategies.
Recently, Semler Scientific disclosed holding 1,570 BTC valued at $117.8 million. The company raised $100 million through equity sales, using part of the funds for Bitcoin acquisitions. This included purchasing 297 BTC at an average price of $97,995 per Bitcoin.
MicroStrategy also continues its aggressive Bitcoin strategy, recently acquiring 55,500 BTC for $5.4 billion, raising its total holdings to 386,700 BTC.
