TLDR
- Rumble, a contender to YouTube's dominance, takes its first plunge into Bitcoin in January 2025, unveiling their $20 million financial maneuver.
- Details on the purchase remain under wraps, but the move aligns with their previous commitment from November 2024 to devote up to $20 million of their funds to Bitcoin.
- Tether makes a significant financial move with a $775 million commitment to Rumble, launching this relationship with a $250 million influx.
- Rumble aligns itself with other public entities like MicroStrategy, adopting Bitcoin as a part of their treasury strategy.
- CEO Chris Pavlovski has teased that this initial Bitcoin purchase is just the beginning of more to come.
The video-sharing service, Rumble, steps into the Bitcoin realm for the first time, marking the initiation of its much-anticipated $20 million cryptocurrency investment strategy, fulfilled on Friday, January 17, 2025, to embark on their cryptocurrency management voyage.
Chris Pavlovski, Rumble's CEO, made the announcement public through a post on X, stating 'This Friday marks our inaugural Bitcoin acquisition, but it certainly won't be the last.' However, the exact amount of Bitcoin secured remains undisclosed.
On Friday, Rumble $RUM taking the leap with a groundbreaking first Bitcoin acquisition $BTC .
It won’t be the last.
— Chris Pavlovski 🏴☠️ (@chrispavlovski) January 20, 2025
The move follows Rumble’s November 2024 the announcement to channel up to $20 million of their cash reserves into the Bitcoin ecosystem. Pavlovski voiced an opinion that the journey towards Bitcoin adoption is still at its threshold.
Trading under the NASDAQ symbol 'RUM', Rumble presents itself as a YouTube alternative, upholding free speech and gaining traction with conservative users in the U.S.
The platform just secured hefty support from stablecoin issuer Tether with a December 2024 pledge of $775 million investment, initially injected with $250 million in cash. Tether, known for issuing USDT, ranked as the world's fourth-largest cryptocurrency by market capitalization.
This approach by Rumble resonates with MicroStrategy's, the tech firm that famously started hoarding Bitcoin back in 2020, amassing a whopping 450,000 Bitcoins, now worth approximately $46.3 billion at a going rate of $103,000 per Bitcoin.
Rumble's foray into Bitcoin coincides with a time when the cryptocurrency's price has been riding high, even as firms holding Bitcoin have been navigating market fluctuations. MicroStrategy’s stock for example, has experienced a massive dip of 45% from its peak in November, sliding from $543 down to $300.
Rumble's involvement in Bitcoin investing is part of a broader movement where public companies diversify into crypto for treasury management. include MARA Holdings , Riot Platforms , and Hut 8.
Their Bitcoin approach involves utilizing surplus reserves, highlighting a long-term view on cryptocurrency investment rather than short-lived trading spurts.
Even though the size of the initial Bitcoin purchase isn't public knowledge yet, the $20 million cap they set unveils the magnitude of Rumble's aspiration in the Bitcoin investment strategy.
The timing of Rumble’s Bitcoin endeavor appears calculated, taking place roughly two months post their strategy reveal, signifying a deliberate pace.
Rumble's choice to delve into Bitcoin succeeds Tether's substantial commitment, emphasizing the company's expanding interests within the crypto domain.
While primarily focusing on their video sharing endeavors, Rumble integrates Bitcoin into its financial framework, showcasing a mix of conventional and contemporary corporate financial strategies.
