Online video platform Rumble has announced its plan to purchase $20 million worth of Bitcoin (BTC) as part of its reserve strategy. This move comes shortly after MicroStrategy CEO Michael Saylor, in a post on X, recommended that Rumble’s CEO consider adding Bitcoin to the company’s reserves. Notably, MicroStrategy itself holds 386,700 Bitcoin, currently valued at over $36 billion.
Rumble’s Bitcoin Reserve Strategy
Rumble has approved a corporate financial diversification strategy, allocating a portion of its excess cash reserves to Bitcoin. Under this strategy, the company will have the right to purchase up to $20 million worth of Bitcoin.
Rumble $RUM Announces Bitcoin Treasury Strategy
I wasn’t joking when I said I was going to be laser focused on the crypto and gaming communities.
It’s a new era. https://t.co/dyEu2YPUyY
— Chris Pavlovski (@chrispavlovski) November 25, 2024
According to the official announcement, the timing and amount of Bitcoin purchases will be determined by Rumble’s management, taking into account various factors such as market conditions, Bitcoin’s trading price, and the company’s anticipated cash requirements. Rumble also emphasized that management has the right to suspend, modify, or discontinue the strategy at any time and for any reason.
Commenting on the Bitcoin reserve strategy, Rumble Chairman and CEO Chris Pavlovski stated, “We believe that the world is still in the early stages of Bitcoin adoption, 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, making it a valuable inflation hedge and an excellent addition to our treasury.”
Rumble’s decision to acquire Bitcoin follows the recommendation from MicroStrategy’s CEO, Michael Saylor.
Saylor recently revealed that MicroStrategy acquired 55,500 BTC for $5.4 billion at an average price of $97,862 per Bitcoin. He added, “As of November 24, 2024, the company holds 386,700 BTC, acquired for $21.9 billion at an average price of $56,761 per Bitcoin.” MicroStrategy has achieved a BTC yield of 35.2% quarter-to-date (QTD) and 59.3% year-to-date (YTD).
Also Read: MicroStrategy Scoops Up Another $5.4B Bitcoin, BTC to $100K This Week?
Source: https://www.cryptonewsz.com/following-microstrategy-rumble-buy-bitcoin-20m/