Rumble (RUM.US) rose after hours, planning to buy up to $20 million in bitcoin
1min read Video platform Rumble (RUM.US) said Monday evening that it approved a financial diversification strategy to allocate some of its excess cash reserves to Bitcoin and buy up to $20 million worth of Bitcoin. The news boosted Rumble's shares after the market close, up more than 5% at the time of writing.
Rumble Chairman and CEO Chris Pavlovski said in a statement Monday: "We believe the world is still in the early stages of adopting Bitcoin. Unlike any government-issued currency, Bitcoin will not be diluted by endless printing, making it a valuable inflation hedge and a great addition to a company's finances." "We are excited to strengthen our ties to crypto assets and strengthen our efforts to become the leading video and cloud service platform in the crypto community."
Rumble's stock has risen nearly 63% so far this year. Given Rumble's popularity among conservatives, the stock is seen as one of the trades related to Trump's return to the White House. It is worth noting that Rumble went public in 2022 through a special purpose acquisition company led by Howard Lutnick, CEO of Cantor Fitzgerald, who was nominated by Trump as the U.S. commerce secretary last week.
MicroStrategy (MSTR.US), a company known for its aggressive Bitcoin buying strategy, has seen its stock rise more than 500% this year. Tesla (TSLA.US) and Block (SQ.US) also bought Bitcoin. Two smaller companies, Semler Scientific (SMLR.US) and Acurx Pharmaceuticals (ACXP.US), also bought Bitcoin this year.
Bitcoin once rose to $99,000 on Monday, but then turned downward. As of writing, Bitcoin is trading at $94,600. Investors are closely watching the next big company to start buying Bitcoin as the Trump administration is expected to take a supportive stance on cryptocurrencies.