Rumble Shares Surge as CEO Considers Adding Bitcoin to Balance Sheet

Rumble Inc., a video-sharing platform and YouTube competitor, saw its shares rise significantly after founder and CEO Chris Pavlovski hinted at the possibility of adding Bitcoin to the company’s balance sheet. The announcement has sparked excitement within the crypto community and pushed the stock price higher during after-hours trading.

Pavlovski Poses Bitcoin Question, Sparks Market Reaction

On Nov. 19, Pavlovski took to X (formerly Twitter) to poll his followers:

“Should Rumble add Bitcoin to its balance sheet?”

The question quickly gained traction, with around 29,000 respondents voting “Yes.” High-profile figures in the crypto space, including Jack Mallers, CEO of Bitcoin payment platform Strike, and Michael Saylor, chairman of MicroStrategy, publicly supported the idea. Saylor, whose company holds over 150,000 Bitcoin, even offered to guide Pavlovski through the process.

Rumble’s shares reacted swiftly, closing up 2.5% at $5.68 and climbing as high as $6.20 in after-hours trading, a 9% surge. The stock later settled at $5.78, reflecting a 1.76% gain since market close, according to Google Finance.

Rumble’s Expanding Presence

Headquartered in Florida and Ontario, Rumble operates a video platform known for its permissive content moderation policies, which have attracted far-right groups and conspiracy theorists. Its cloud infrastructure supports platforms like Truth Social, the social media network owned by former U.S. President Donald Trump.

With 67 million monthly active users, Rumble has positioned itself as an alternative to mainstream platforms like YouTube. The company went public on Nasdaq in September 2022 and has shown steady revenue growth despite recent challenges.

As of Sept. 30, 2024, Rumble reported approximately $132 million in cash, cash equivalents, and marketable securities. Its Q3 revenue reached $25 million, up 39% year-over-year. However, the results fell short of Wall Street expectations, with revenue missing estimates by 14% and earnings per share (EPS) down by 20%.

A Trend Among Companies Embracing Bitcoin

If Rumble moves forward with Bitcoin acquisition, it will join a growing list of companies diversifying their reserves with cryptocurrency.

• Genius Group: The artificial intelligence firm adopted a “Bitcoin-first” strategy on Nov. 18, acquiring 110 Bitcoin for $10 million. It plans to eventually hold 90% of its reserves in Bitcoin.

• Metaplanet: The Japan-based company purchased an additional $11.3 million worth of Bitcoin, bringing its total holdings to 1,142.2 Bitcoin as of Nov. 19.

• Semler Scientific: The medical device manufacturer recently increased its Bitcoin holdings to 1,273 Bitcoin after a $17.7 million purchase.

These moves highlight the increasing appeal of Bitcoin as a strategic reserve asset, especially among companies looking to hedge against inflation or diversify their balance sheets.

Bitcoin in Corporate America

Bitcoin has been gaining momentum among publicly traded companies. Major players like MicroStrategy, Tesla, and Block have led the charge, holding substantial Bitcoin reserves. A recent proposal from a Microsoft shareholder even suggested the tech giant explore Bitcoin investments, underscoring the cryptocurrency’s rising significance in corporate finance.

Challenges and Opportunities

While the prospect of Rumble adopting Bitcoin has energized investors, the move is not without risks. Bitcoin’s volatility and regulatory uncertainties could pose challenges for a company navigating a competitive and politically charged environment. However, proponents argue that Bitcoin’s long-term value and decentralized nature align with Rumble’s ethos of supporting alternative platforms.

Rumble’s potential Bitcoin acquisition marks a significant moment in the convergence of cryptocurrency and corporate strategy. As the debate unfolds, the company’s decision could influence broader adoption trends among mid-cap firms seeking innovative financial strategies.

Stay tuned for updates as Rumble’s Bitcoin journey develops.