Video sharing platform and cloud service provider Rumble (NASDAQ:RUM) has announced the purchase of around $17.1 million in approximately 188 Bitcoin as part of its previously disclosed Bitcoin financial strategy. The purchase, taken at an average price of around $91,000 per coin, is part of the company's plan to allocate up to $20 million to Bitcoin.
“We look forward to announcing these Bitcoin purchases and allocations as part of our financial strategy, and we are also excited to announce larger strategic moves to further expand our ties with the crypto industry,” said Rumble Chairman and CEO Chris Pavlovski. “These holdings can serve as valuable hedges against inflation and are not subject to dilution like so many government-overised currencies. As the leading video and cloud services platform for the Crypto community, we are proud to continue growing and to be able to officially hold Bitcoin while continuing to etch the crypto into the company's DNA.”
The announcement was approved by the board of directors following the previously disclosed diversification strategy of the Ministry of Corporate Finance. The objective of this strategy is to use Bitcoin as a strategic asset to accelerate the company's expansion into digital assets while strengthening its financial position.
“We believe that the world is still in the early stages of adoption of Bitcoin. Bitcoin has recently accelerated with the increase in elections and institutional adoption of the US presidential administration, which is crypto-friendly,” Pavlovski said. “Unlike government-issued currency, Bitcoin will not dilute via endless money prints. This will allow for valuable inflation hedges and a great addition to the Treasury. We are also excited to strengthen our relationship with crypto and strengthen our efforts to become the Crypto community's leading video and cloud services platform.”
The company noted that the actual timing and value of future Bitcoin acquisitions will depend on a variety of factors, including general market conditions, the trading price of Bitcoin, and the expected cash needs of Rumble. Rumble said their strategy remains flexible and could be revised, suspended or discontinued at any time at the company's discretion.
