According to Decrypt, publicly-listed Rumble Inc., a video-sharing and cloud services provider, has announced its board's approval to allocate up to $20 million of its cash reserves into Bitcoin. This decision aligns with a growing trend among corporations adopting Bitcoin, following the lead of companies like MicroStrategy and Metaplanet Holdings. Rumble, which is listed on Nasdaq, views this diversification strategy as a means to hedge against inflation and preserve long-term value. Chris Pavlovski, Rumble's chairman and CEO, stated that the company believes the world is still in the early stages of Bitcoin adoption. The move is also intended to enhance Rumble's appeal as a platform for the crypto community.
Founded in 2013 by Chris Pavlovski, Rumble provides a platform for users to upload, share, and monetize video content. It has gained traction among American conservative and right-wing users and is considered part of the "alt-tech" movement. Rumble's decision to invest in Bitcoin adds to the momentum of corporate adoption of digital assets, which has been fueled by rising inflation concerns and the increasing mainstream acceptance of cryptocurrencies. Pavlovski highlighted that Bitcoin, unlike government-issued currencies, is not subject to dilution through excessive money printing, making it a valuable inflation hedge and a strong addition to the company's treasury.
Rumble's strategy mirrors that of MicroStrategy, an enterprise software firm that has become a prominent Bitcoin advocate since 2020, holding over $37.5 billion worth of the asset. MicroStrategy promotes Bitcoin as a superior store of value compared to cash. Similarly, Metaplanet Holdings, founded by Skype co-creator Jaan Tallinn, has incorporated Bitcoin into its financial strategy for diversification and as an inflation hedge. The timing and extent of Rumble's Bitcoin purchases will depend on market conditions, Bitcoin's trading price, and the company's liquidity needs. Pavlovski emphasized that the strategy is flexible and may be adjusted or suspended as necessary.
