Rumble is officially entering the crypto arena with plans to potentially add Bitcoin to its portfolio. This was initiated by a Twitter poll from CEO Chris Pavlovski, asking followers if the company should invest in Bitcoin.
The poll gained significant engagement, drawing over 39,000 responses, predominantly in favor of the proposal.
This announcement prompted a positive reaction from traders and analysts, leading to a 9% increase in Rumble Inc (RUM) shares during after-hours trading on November 19, peaking at $6.20. As of the third quarter, the company reported having $132 million in cash and equivalents.
Rumble Explores Bitcoin Possibility, Engaging with Saylor
What began as a lighthearted poll from Pavlovski turned into a meaningful exchange with Michael Saylor of MicroStrategy. Saylor expressed his support for the idea of Rumble investing in Bitcoin and indicated a willingness to discuss the details further.
Yes. I would be happy to discuss why & how with you.
— Michael Saylor (@saylor) November 19, 2024
Pavlovski’s poll drew substantial engagement, indicating serious interest or at least consideration from him about Bitcoin investment, potentially looking to Saylor for guidance.
As of now, the poll’s votes exceeded 39,400, with more than 93% in agreement. Following the announcement, shares rose to $6.20 but closed at $5.78.
Should Rumble add Bitcoin to its balance sheet?
— Chris Pavlovski (@chrispavlovski) November 19, 2024
Rumble Looks to Diversify
Rumble is a prominent platform that offers video-sharing services as a competitor to YouTube. It also includes a cloud services branch and operates Truth Social, a social media site backed by Donald Trump, a frontrunner in the upcoming presidential election.
With 67 million active users, Rumble went public on Nasdaq in September 2022. By the end of the third quarter, it had $132 million in cash and equivalents.
The platform generated $25 million in revenue for the last quarter, marking a 39% increase year-on-year, although it fell short of analyst expectations with a 14% revenue drop compared to previous figures.
Rumble Joins the Trend of Companies Adopting Bitcoin
If Rumble decides to proceed with its Bitcoin strategy, it would align with a growing trend among tech firms. Recently, Genius Group declared its intention to follow a “Bitcoin-focused” path, planning to acquire 110 Bitcoins as its initial investment.
Genius Group plans to allocate 90% of its reserves toward Bitcoin. Meanwhile, MetaPlanet recently made headlines by acquiring $11.3 million in Bitcoin, increasing its total to 1,142.2 Bitcoins. Semler Scientific is also involved, purchasing $17.7 million in Bitcoins, raising its total holdings to 1,273.
Rumble’s potential interest in Bitcoin illustrates the expanding role of cryptocurrencies and blockchain technology. Following MicroStrategy’s success, many firms are evaluating Bitcoin as a viable asset for their investment strategies.
Image source from Invesco; chart from TradingView
