Rumble, the conservative-leaning video platform, announced on Monday night that it will channel up to $20 million of its extra cash into Bitcoin.
As soon as the news broke, Rumble’s stock shot up almost 4% in after-hours trading. Chris Pavlovski, Rumble’s chairman and CEO, had plenty to say about the decision. He called Bitcoin a solid inflation hedge and a smart addition to the company’s treasury, pointing out its immunity to government money-printing.
“We believe the world is still in the early stages of Bitcoin adoption,” Pavlovski said. He also made it clear this is part of Rumble’s larger plan to strengthen its ties to the crypto community.
Rumble steps into Bitcoin’s big league
This puts Rumble in the same league as corporate heavyweights like MicroStrategy, Tesla, and Block. MicroStrategy set the trend back in 2020 with its aggressive Bitcoin-buying spree, turning its stock into a Bitcoin proxy.
The strategy worked. MicroStrategy’s shares are up more than 500% this year. Tesla and Block also jumped on the Bitcoin bandwagon early, while smaller companies like Semler Scientific and Acurx Pharmaceuticals joined the trend in 2024.
Rumble’s timing couldn’t be better. Its stock has soared nearly 63% this year, and it’s up 42% over the past 12 months. The company’s move to go public in 2022 through a special purpose acquisition company (SPAC) led by Cantor Fitzgerald CEO Howard Lutnick set the stage for its current growth.
Lutnick is now having market effects of his own after being tapped by President-elect Donald Trump as the incoming U.S. Commerce Secretary.
Speaking of Trump, Rumble is seen by many as riding the same political momentum. The platform has built its identity as a YouTube alternative, thriving among conservatives and Trump supporters.
With the president heading back to the White House, the administration’s crypto-friendly stance is expected to shake things up, and companies like Rumble are positioning themselves to capitalize on that.
Bitcoin, Trump, and the crypto tidal wave
Bitcoin itself is having a rollercoaster year. It came tantalizingly close to hitting $100,000 last week before pulling back over 3% on Monday, landing around $95,000 as of press time.
Even with this dip, Bitcoin has more than doubled in 2024, and many believe the elusive $100k is just around the corner. The broader crypto market, which has added $1 trillion in value since Trump’s election win, hit a slight pause this week, but the momentum is far from over.
He’s promised to make the U.S. the global crypto capital, proposing regulatory changes to support the industry and even floating the idea of a national Bitcoin reserve. Senator Cynthia Lummis of Wyoming backed this up with her proposal for a strategic Bitcoin stockpile earlier this year.
Meanwhile, Michael Saylor, the MicroStrategy chairman who’s basically become Bitcoin’s unofficial cheerleader 001, recently announced plans to pitch Microsoft’s board on adopting Bitcoin as part of its treasury strategy.
His timing couldn’t be more perfect. Over $7 billion has flowed into U.S. Bitcoin ETFs since Trump’s election, bringing their total assets to $105 billion.
Adding to the drama, Trump’s announcement of new tariffs on imports from China, Mexico, and Canada rattled global markets earlier. U.S. equity futures fell, and the dollar strengthened, signaling cautious investor sentiment. Despite these short-term jitters, crypto bulls remain optimistic, expecting the bullish momentum to carry well into 2025.
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