Video-sharing platform Rumble announced that it plans to allocate up to $20 million in Bitcoin for its crypto treasury.
The video-sharing and cloud services company announced yesterday that its board has approved a strategy to diversify its corporate treasury by allocating up to $20 million of spare cash to 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. Unlike any government-issued currency, Bitcoin is not subject to dilution through endless money-printing, enabling it to be a valuable inflation hedge and an excellent addition to our treasury,” said Rumble Chairman and CEO Chris Pavlovski.
The Chairman went further to reveal his vision for Rumble to become the leading video and cloud services platform for the crypto community.
“We are also excited to strengthen our ties with crypto and to bolster our efforts to become the leading video and cloud services platform for the crypto community,” Pavlovski added.
Rumble announces this move when Bitcoin is retracting and has failed to breach the $100,000 mark. Rumble however noted that the strategy is flexible and might be paused or discontinued at any time.
Rumble joins the ranks of Microstrategy and other corporate firms investing in Bitcoin and setting up strategic reserves. Microstrategy remains the largest corporate holder of Bitcoin.
The Business intelligence firm got into Bitcoin in 2020 during the lockdown and has grown its Bitcoin holdings to $386,700.
Other Firms investing in Crypto
Rumble’s move to put $20 million into crypto is not an isolated case as several firms have also made moves to invest in crypto especially Bitcoin.
- These public companies are usually seeking to leverage Bitcoin and a store of value and hedge against inflation.
- Genius Group, an artificial intelligence firm, recently disclosed plans to invest $4 million to the crypto as part of its “Bitcoin-first” strategy.
Other firms include Anixa Biosciences, a cancer-focused biotech firm, which announced on Nov. 22 its decision to allocate a portion of its treasury to Bitcoin stressing the crypto asset’s ability to serve as a perfect hedge against inflation.
What to Know
- Bitcoin is currently exchanging hands for $93,649 dropping from its peak $99,000 price level from days ago. Analysts still believe the asset will cross the psychological $100,000 barrier before the year ends.
- Microstrategy stocks are highly sought after due to its heavy investment in Bitcoin. The business intelligence firm has acquired the most of BTC and plans to buy even more over the next three years.