Rumble, a video-sharing platform and cloud services provider, has announced its decision to allocate up to $20 million of its corporate treasury to Bitcoin. The move, approved by its Board of Directors, underscores the company’s commitment to diversifying its cash reserves and expanding its presence in the cryptocurrency sector.
Rumble Adopts Bitcoin Strategy With $20M Plan for Treasury Diversification
According to a recent announcement, Rumble plans to allocate up to $20 million of its excess cash reserves to Bitcoin as part of its treasury diversification strategy. The company’s leadership believes this initiative will enhance its financial flexibility and position it favorably within the growing cryptocurrency market.
Rumble highlighted Bitcoin’s potential as an inflation hedge, citing its resistance to dilution through money-printing. The company also noted that increasing institutional adoption and friendly crypto regulations have accelerated Bitcoin’s integration into corporate strategies.
Rumble CEO Chris Pavlovski added,
“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 crypto-friendly U.S. presidential administration and increased institutional adoption. Unlike any government-issued currency, Bitcoin is not subject to dilution through endless money-printing, enabling it to be a valuable inflation hedge and an excellent addition to our treasury”
Additionally, the company highlighted that the actual timing and value of Bitcoin purchases under allocation strategy will be determined by management. Decisions will depend on several factors, including general market conditions, Bitcoin’s trading price, and the company’s anticipated cash needs.
More so, the measured approach will manage the cryptocurrency market volatility while capitalizing on Bitcoin’s long-term potential. Management retains full discretion to align purchases with the company’s financial goals.
Bitcoin Treasury Strategy Gains Momentum Among Corporates
Corporate adoption of Bitcoin is steadily increasing as companies recognize its potential as a treasury asset and strategic tool. Firms across industries are leveraging Bitcoin for its ability to serve as an inflation hedge and diversify financial reserves.
High-profile organizations like Tesla and MicroStrategy, along with governments such as Bhutan and El Salvador, have incorporated Bitcoin.
Most recently, Semler Scientific disclosed holding 1,570 BTC worth $117.8 million. The company raised $100 million through equity sales, partially funding its Bitcoin acquisitions. Semler’s latest purchases included 297 BTC acquired at an average price of $97,995 per Bitcoin.
Similarly, Michael Saylor’s MicroStrategy added to its Bitcoin strategy by acquiring 55,500 BTC for $5.4 billion, bringing its total holdings to 386,700 BTC.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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