Popular video-sharing platform Rumble Inc. (NASDAQ:RUM) became the latest Wall Street player to embrace the Bitcoin (CRYPTO: BTC) treasury strategy amid the apex cryptocurrency’s record-breaking run.
What Happened: According to an announcement made Monday, Rumble’s board approved a new strategy to allocate a portion of the company’s surplus cash reserves to Bitcoin. This move was part of Rumble’s strategic planning, aimed at supporting the company’s foray into the cryptocurrency market.
Rumble’s allocation strategy will include investments of up to $20 million, at the company’s discretion. At the prevailing market price, this would amount to a purchase of around 212 Bitcoins.
That said, the actual timing and value of the purchase would be decided by the management, contingent on factors such as general market conditions and the price of 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 crypto-friendly U.S. presidential administration and increased institutional adoption,” Rumble CEO Chris Pavloski said.
He called Bitcoin a “valuable inflation hedge” and an “excellent addition” to the company’s treasury.
See Also: EXCLUSIVE: Tim Draper Predicts Bitcoin To Reach $120K By End Of 2024, $250K In 2025
Why It Matters: This move by Rumble comes in the wake of an increasing interest in Bitcoin investment among major companies.
Interestingly, just last week, MicroStrategy Inc. (NASDAQ:MSTR) CEO Michael Saylor offered to educate Pavloski on the implications of adding Bitcoin to a company’s reserves.
MicroStrategy pioneered the now-popular strategy, adding as many as 386,700 Bitcoins, worth over $36 billion, to its books., according to Bitcointreasuries.net.
Several major Wall Street firms, including MARA Holdings Inc. (NASDAQ:MARA), the world’s largest Bitcoin miner, have replicated MicroStrategy’s playbook. MARA is the second-largest corporate holder of Bitcoin, with 27,562 BTCs in its reserves, while Riot Platforms Inc. (NASDAQ:RIOT) and Tesla Inc. (NASDAQ:TSLA) follow with 10,928 and 9.720, respectively.
Price Action: At the time of writing, Bitcoin was trading at $93,975.66, down 3.70% in the last 24 hours, according to data from Benzinga Pro. Since Donald Trump’s presidential victory earlier this month, the asset has surged by 38%.
Shares of Rumble surged 12.6% during Monday’s regular trading session.
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