In the age of Bitcoin institutional adoption, video-sharing platform Rumble has announced its Board of Directors has approved a corporate treasury diversification strategy that will allocate some of its excess cash reserves to Bitcoin.
The move comes as more companies find interest in allocating some of their cash reserves to invest in the world’s largest cryptocurrency by market value upon witnessing MicroStrategy’s success following its early adoption of a BTC treasury strategy.
Riding the MicroStrategy Wave
Michael Saylor’s MicroStrategy has found great success since becoming the first public company to hold BTC on its balance sheet. Saylor revealed Monday that year to date, the company’s treasury operations “delivered a BTC Yield of 59.3%, providing a net benefit of ~112,125 BTC to our shareholders.”
Rumble is joining the gang, following in the footsteps of Japanese company Metaplanet, medical manufacturer Semler Scientific, and Chinese tech firm Meitu. It is allocating up to $20 million of its cash reserves toward 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,” said Rumble Chairman and CEO Chris Pavlovski in a statement Monday.
He said Bitcoin’s innate features such as not being subject to dilution enables it to be “a valuable inflation hedge and an excellent addition to our treasury.”
Pavlovski added that the company is looking forward to strengthening ties with the crypto space and bolster its efforts to become the leading video and cloud services platform for the cryptocurrency community.
He noted that management will determine the actual timing and value of BTC purchases to be made by Rumble and such purchases will still depend on general market and business conditions among other factors.
Crypto Community Celebrates Rumble’s ‘Smart’ Move
Optimism wrapped the crypto community on Monday, especially Bitcoiners who believe more companies adopting a BTC strategy can build trust for broader adoption.
Most crypto users congratulated Rumble for making a “smart business move,” while others expressed excitement for the video-sharing platform’s forward thinking.
“Watching companies convert dollars to Bitcoin is like seeing businesses in the 90s finally get their first website – those who wait too long will spend the next decade playing expensive catch-up,” one user wrote.
Perfect Timing for Rumble?
As Pavlovski noted, Rumble is jumping into the Bitcoin treasury strategy frenzy at a time when the United States is about to welcome a new administration that’s much more pro-crypto and pro-innovation than its predecessor.
President-elect Donald Trump vowed support for the BTC community and Bitcoin mining and also said he will work to ensure that crypto “will be made in the USA.”
Since winning the U.S. presidential race, Bitcoin has added over $20,000 to its price and even hit as high as $99,300. While the digital currency has since retreated below $95,000, its recent pricing surge has brought more hope for mass adoption to be closer than ever.
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