Influenced by MicroStrategy, video platform Rumble announced on Monday that the company will allocate part of its cash reserves to purchase up to 20 million dollars worth of Bitcoin. Following the news, Rumble's stock price surged nearly 4% in after-hours trading.
Rumble Chairman and CEO Chris Pavlovski stated: 'We believe that the global adoption of Bitcoin has just begun. Unlike government-issued currencies, the value of Bitcoin will not be diminished by endless money printing, making it an excellent hedge against inflation and a great supplement to our cash reserves.'
He further pointed out: 'We look forward to strengthening our connection with the cryptocurrency community and solidifying our position as the preferred video and cloud service platform for the cryptocurrency community.'
This initiative places Rumble in the same camp as MicroStrategy, which has adopted an aggressive Bitcoin purchasing strategy since 2020, becoming a 'shadow stock' of Bitcoin, with its stock price soaring over 500% this year. Other tech giants like Tesla and Block have also purchased Bitcoin, and this year, two small companies have followed suit, including Semler Scientific in May and Acurx Pharmaceuticals last week.
Rumble is favored by conservative users and is seen as an alternative to YouTube, and has always been viewed as closely associated with Trump. With Trump returning to the White House, its stock price has also garnered significant attention. The platform went public in 2022 through a SPAC (Special Purpose Acquisition Company) led by Cantor Fitzgerald CEO Howard Lutnick.
Just last week, Howard Lutnick was nominated by Trump as the U.S. Secretary of Commerce, and his company recently finalized a 600 million dollar investment in stablecoin USDT issuer Tether.
Rumble's stock price has risen nearly 63% this year, with a cumulative increase of 42% over the past year.
As for Bitcoin, earlier this month it briefly approached the 100,000-dollar mark, but as of the time of writing, it has fallen back to around 93,000 dollars. However, the market still expects Bitcoin to break the 100,000-dollar mark before the end of the year.
[Disclaimer] The market carries risks, and investment should be approached with caution. This article does not constitute investment advice; users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Any investments based on this are at one's own risk.
This article is reprinted with permission from: (Blockster)
'The favorite platform for Trump supporters! Rumble plans to spend 20 million dollars to buy Bitcoin, where will it rise by the end of the year?' This article was first published in 'Crypto City'
