Rumble to Allocate Up to $20M in Bitcoin as Part of New Treasury Strategy

Rumble, the video-sharing platform known as a YouTube alternative, has officially confirmed plans to add Bitcoin to its balance sheet, becoming the latest company to embrace cryptocurrency as part of its financial strategy. This announcement comes just days after CEO Chris Pavlovski hinted at the idea on social media.

In a statement released on November 25, Rumble revealed that its board of directors had approved a new treasury strategy. Under the plan, the company will allocate a portion of its excess cash reserves—up to $20 million—toward purchasing Bitcoin (BTC), with management given discretion over the timing and specific amount of the purchases.

The idea of adding Bitcoin to Rumble’s balance sheet was first floated by Pavlovski on November 19 via a poll on X (formerly Twitter). Of the 43,790 participants, a resounding 93.9% supported the proposal.

Rumble explained that the timing of its first Bitcoin purchase will depend on a variety of factors, including market conditions, Bitcoin’s price, and the company’s cash flow needs. “We believe that the world is still in the early stages of Bitcoin adoption, a trend that has been accelerating with the election of a crypto-friendly U.S. administration and growing institutional interest,” said Pavlovski.

He further emphasized Bitcoin's value as a hedge against inflation, citing its resistance to the dilution caused by central banks' money-printing policies. “Unlike government-issued currencies, Bitcoin cannot be subject to inflationary pressures, making it a valuable addition to our treasury,” he added.

The company also noted that the strategy is flexible and could be suspended, modified, or discontinued at any time based on business needs or changing market conditions. Despite the potential for adjustment, Rumble stressed that this move underscores its belief in Bitcoin as a powerful tool for strategic growth, especially as the company looks to expand its presence in the cryptocurrency space.

Following the announcement, Rumble’s stock (RUM) saw a notable jump, rising by 12.63% to $7.31 during regular trading. After-hours trading saw the stock climb even further, gaining an additional 5.47% to reach $7.71.

Rumble, which boasts roughly 67 million monthly active users, is recognized for its more lenient content moderation policies compared to other video-sharing platforms. By adding Bitcoin to its balance sheet, the company positions itself alongside a growing list of firms embracing digital assets as part of their financial strategies.

Other Firms Exploring Bitcoin Additions to Their Balance Sheets

Rumble joins several other prominent companies that have turned to Bitcoin as a treasury asset in 2024. Leading the pack is MicroStrategy, the business intelligence firm headed by Michael Saylor, which currently holds 331,200 BTC—worth worth approximately $36 billion, according to the Saylor Tracker.

Bitcoin mining company MARA Holdings, formerly known as Marathon Digital, also made headlines on November 18 by announcing a $700 million offering of convertible senior notes, part of which will be used to acquire additional Bitcoin. Similarly, tech solutions provider Semler Scientific disclosed it had purchased 215 BTC for $17.7 million between November 6 and 15, bringing its total holdings to 1,273 BTC.

In another notable move, artificial intelligence company Genius Group announced on November 18 that it had acquired 110 Bitcoin for $10 million, with plans to eventually allocate up to 90% of its reserves to Bitcoin.

As more companies turn to Bitcoin to diversify their assets, it’s clear that the digital currency continues to gain recognition as a strategic financial tool, particularly among tech-focused and forward-thinking firms.