Video platform Rumble (RUM, Financial) announced a strategic move to diversify its financial assets by allocating part of its excess cash reserves to Bitcoin, with plans to purchase up to $20 million worth. This announcement led to a more than 5% increase in Rumble's stock price during after-hours trading.
Rumble's Chairman and CEO, Chris Pavlovski, emphasized their belief that the adoption of Bitcoin is still in its early stages. Unlike government-issued currencies, Bitcoin is not subject to dilution through endless printing, making it a valuable hedge against inflation and a strong addition to the company's finances. Pavlovski expressed enthusiasm for strengthening ties with the crypto community and enhancing Rumble's role as a leading video and cloud service platform in this space.
Rumble's stock has risen nearly 63% this year. Its popularity among conservative circles positions it as a stock linked to potential political developments, such as Trump's return to the White House. Notably, Rumble went public in 2022 via a special purpose acquisition company led by Cantor Fitzgerald CEO Howard Lutnick, who was recently nominated by Trump for U.S. Commerce Secretary.
MicroStrategy (MSTR), known for its aggressive Bitcoin acquisition strategy, has seen its stock soar over 500% this year. Other companies like Tesla (TSLA) and Block (SQ) have also invested in Bitcoin. Smaller firms such as Semler Scientific (SMLR) and Acurx Pharmaceuticals (ACXP) have joined the trend this year. Bitcoin briefly surged to $99,000 before pulling back to $94,600, as investors watch for which major company will next invest in Bitcoin, especially with expectations of a pro-crypto stance from the Trump administration.
