Rumble Plans to Buy Bitcoin From Cash Reserves
Rumble (RUM), the conservative-leaning streaming platform whose backers include Vice President-elect JD Vance, said it is planning to allocate part of its cash reserves to bitcoin (BTCUSD).
Rumble shares were up around 4% Tuesday morning.
The incoming White House is openly crypto-friendly and Donald Trump has said he would make the U.S. the “crypto capital of the planet” and create a bitcoin “strategic reserve” using the currency that the government currently holds. Bitcoin prices have been falling in recent days but have topped $90,000 and traded near the $100,000 milestone since Trump was elected last month.
Rumble said its board has greenlit a “corporate treasury diversification strategy of allocating a portion of the company's excess cash reserves to Bitcoin.”
«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 cryptofriendly U.S. presidential administration and increased institutional adoption,” Rumble Chairman and Chief Executive Officer (CEO) Chris Pavlovski said.
He added that because it isn’t “government issued,” bitcoin wouldn’t lose its value through “endless money-printing” and could help hedge against inflation.
Pavlovski said the timing of the Bitcoin purchases would hinge on the general market conditions and Rumble management’s discretion.
Amassing bitcoin has boosted the shares of companies like software maker MicroStrategy (MSTR), now the largest corporate holder of the token. Its stock has surged more than 500% this year. Rumble's shares gained almost 70% year-to-date.
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