Key Points
- Rumble, a Canadian video-sharing platform, has made its first purchase of Bitcoin for its corporate treasury.
- The CEO of Rumble, Chris Pavlovski, has indicated that the company will continue to purchase Bitcoin in the future.
Rumble, a prominent video-sharing platform from Canada, has made its first purchase of Bitcoin (BTC) since deciding to use the leading cryptocurrency as a strategic corporate reserve. This move is aimed at tackling inflation and economic uncertainty.
The company’s CEO, Chris Pavlovski, announced on Monday that Rumble acquired an unspecified amount of BTC on Friday, January 17. He also expressed the company’s intention to continue purchasing more in the future. Although Pavlovski did not disclose the exact amount, a report by Cointelegraph suggested that the company invested up to $20 million in BTC.
Rumble’s Strategy and Adoption of Bitcoin
When Rumble initially announced its plan to join corporations such as MicroStrategy, Metaplanet, and India’s Jetking Infotrain in adding Bitcoin to their balance sheets, it stated that it would buy up to $20 million worth of the cryptocurrency.
Rumble views Bitcoin as more than just a store of value, describing it as a “valuable tool for strategic planning.” The company believes that we are still in the early stages of Bitcoin adoption, which has recently accelerated due to a crypto-friendly US presidential administration and increased institutional adoption.
Rumble also clarified that any Bitcoin purchases would be subject to managerial approval. The firm also considered other factors, such as general market and business conditions, Bitcoin’s trading price, and Rumble’s anticipated cash needs.
Market Impact and Rumble’s Business Growth
As a leading video-sharing platform, Rumble has a market valuation of $3.6 billion and boasts over 50 million users. The news of its Bitcoin acquisition resulted in a nearly 6% rise in the company’s shares (RUM), according to Google Finance data. Over the past year, Rumble’s stock has recorded an impressive 253% growth.
A report by Yahoo Finance attributes this substantial growth to several factors, including “strong audience monetization growth, particularly through increased Rumble Premium subscriptions and higher revenues from its Rumble Advertising Center, alongside a significant surge in user engagement driven by the US presidential election.”
In Q3 2024, Rumble reported strong growth in monthly active users (MAUs), reaching 67 million, which has further driven its monetization efforts. Beyond financial performance, the company has expanded its business offerings to position itself for further growth. In November 2024, Rumble announced the expansion of its cloud infrastructure with major clients, reinforcing its commitment to scaling its operations.
