Rumble’s New Corporate Treasury Diversification Strategy Includes Buying Bitcoin: Flips Retail Sentiment To Bullish
By Stocktwits Inc | First Published Nov 26, 2024, 7:07 PM ISTChairman and CEO Chris Pavlovski said 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.
Video-sharing platform Rumble Inc ($RUM) announced on Tuesday morning that the firm’s Board of Directors has approved a corporate treasury diversification strategy that includes allocating a portion of the firm’s excess cash reserves to Bitcoin ($BTC.X).
The strategy includes the purchase of up to $20 million in Bitcoin at the firm’s discretion. Despite the news, shares of Rumble were down over 2% in Tuesday’s pre-market session.
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Chairman and CEO Chris Pavlovski said 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,” he said.
Bitcoin prices have rallied significantly since Republican Donald Trump emerged victorious in the Presidential elections held in early November. However, after hitting the high of $99,655.50, the crypto asset witnessed some profit-booking and is currently hovering near the $91,800 mark.
Meanwhile, retail sentiment around Rumble stock on Stocktwits has flipped into the ‘bullish’ territory (66/100) from ‘bearish’ a day ago, accompanied by high message volume.
One user on Stocktwits expressed caution on the firm’s new strategy to purchase BTC.
Others, however, were positive on the stock.
On Monday, Rumble had announced that Dr Disrespect, a popular online streamer, has joined the platform and will be streaming his popular content.
As part of the agreement that includes equity with milestones as a majority of its compensation, Dr Disrespect will provide exclusive content to Rumble Premium for his "Champions Club" community.
Dr Disrespect is a well known online streamer and became known for playing battle royale games such as "Call of Duty," "H1Z1," and "PUBG: Battlegrounds" on Twitch and YouTube. “Dr Disrespect will also lead Rumble Gaming, acting as an advisor and helping to build the Rumble Gaming community,” the firm said in a statement.
Shares of Rumble have gained over 68% since the beginning of the year.
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