Public company Rumble launches Bitcoin strategy

Canadian public company Rumble announced in a press release yesterday that it is betting on Bitcoin as a reserve asset and will invest up to $20 million.

Rumble, the video-sharing platform and cloud services provider, announced today that its Board of Directors has approved a corporate treasury diversification strategy of allocating a portion of the company’s excess cash reserves to Bitcoin. [...] Rumble’s Bitcoin allocation strategy will include purchases, at the discretion of the company, of up to $20 million. 
_{From the press release}

Founded by Chris Pavlovski, the company has a market capitalization of approximately $2 billion, making it one of the larger companies pursuing a Bitcoin strategy.

On November 19, 2024, Rumble founder and CEO Chris Pavlovski asked his followers on the 𝕏 platform whether the company should include Bitcoin in its balance sheet. The result of the survey was clear: 93.9% voted in favor.

As part of Pavlovski's Bitcoin posts, Michael Saylor, the founder of MicroStrategy, the largest company holder of Bitcoin, also spoke up and made him an offer to talk, which he accepted - Blocktrainer.de reported.

As Rumble's decision to launch the Bitcoin strategy was only a few days away, it can be assumed that Saylor, who is also in contact with the decision-makers of other public companies, played a part in this.

The Rumble CEO now explains in the press release that he sees Bitcoin as a hedge against inflation due to the limited total supply and assumes that the acceptance of the asset class should continue to increase.

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.
_{Chris Pavlovski in the press release}

It is currently unclear when Rumble will invest in Bitcoin for the first time. According to the press release, the company will use its own discretion to determine when a good time is right.

In the context of the current rise in the price of Bitcoin, more and more stock corporations are adding the asset to their balance sheets or are planning to do so - Blocktrainer.de reported. Companies that have previously invested in BTC, such as MARA Holdings and MicroStrategy, are also significantly increasing their holdings.

With Hut 8, another public company from Canada could also buy Bitcoin in the near future. The CEO of the mining company also asked his 𝕏-followers via a survey yesterday whether the current position of 9,100 BTC should be expanded further.

Michael Saylor may also submit a presentation to Microsoft's board of directors next month with the aim of convincing them to invest in Bitcoin - Blocktrainer.de reported. Only time will tell whether this will succeed.

In any case, it is positive for Bitcoiners that more and more public companies are investing in the asset and thereby increasing their company or shareholder value.

However, although the competition for the "first mover" MicroStrategy is currently increasing, it is continuously extending its lead. Even big players such as Microsoft are unlikely to be able to build up a larger portfolio than the stock corporation founded by Michael Saylor.

Nevertheless, it is clear that companies have benefited from their Bitcoin strategies in the short, medium and long term. If the success of Bitcoin continues, every institution would be well advised to include the asset in its balance sheet.