Nasdaq-listed video-sharing and cloud services platform Rumble has announced it’s allocating up to $20 million of its cash reserves to Bitcoin as its board of directors approved a “corporate treasury diversification strategy of allocating a portion of the company’s excess cash reserves to Bitcoin.”
In a recent announcement, the company’s CEO Chris Pavlovski emphasized Bitcoin’s potential as a store of value and a hedge against inflation and highlighted the firm believes “the world is still in the early stages of the adoption of Bitcoin.”
Pavlovski noted Bitcoin is “not subject to dilution through endless money-printing.” Rumble’s announcement notes that the timing of its Bitcoin purchases will be “determined by management in its discretion and will depend on several factors, including, among others, general market and business conditions, the trading price of Bitcoin and the anticipated cash needs of Rumble.“
The move comes after Pavlovski asked on the microblogging platform X (formerly known as Twitter) whether Rumble should add Bitcoin to the firm’s balance sheet, with a subsequent poll showing that out of 43,790 votes 93.9% of respondents said “yes.”
Responding to the CEO’s question Michael Saylor, the cofounder and chairman of MicroStrategy, the world’s largest corporate holder of Bitcoin, said he would be happy to discuss “why & how” the firm should add BTC to its balance sheet.
Pavlovski’s response suggests the conversation then kept on going through direct messages, with the result seemingly being Rumble’s move to indeed add BTC to its balance sheet.
Notably, MicroStrategy has recently added an additional 55,500 BTC to its balance sheet in a massive $5.4 billion acquisition at an average price of $97,862 per coin, moving the company’s average price paid per BTC to $56,761.
As a result of the purchase – MicroStrategy’s largest to date – the company now has 386,700 BTC on its balance sheet that was acquired for around $21.9 billion and is currently worth more than $36 billion.
Featured image via Unsplash.
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