Rumble CEO Considers Bitcoin Move: Stock Surges 9% Following Announcement - Blockonomi
by Nicholas Say · BlockonomiChris Pavlovski, the founder and CEO of Rumble, an alternative to mainstream video-sharing platforms like YouTube, is considering adding Bitcoin to the company’s balance sheet.
Rumble shares soared 9% to above $6 after the idea surfaced. With more companies looking to BTC – prices may find support at higher levels.
On Nov. 19, Pavlovski publicly asked the community whether Rumble should add Bitcoin to its balance sheet. He also conducted a poll about the idea, which currently shows that around 94% of respondents voted in favor of it.
BTC The New Reserve Asset?
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Many cryptocurrency leaders have voiced support for Pavlovski’s idea. Jack Mallers, founder of Bitcoin payment firm Strike, said he would be “happy to help if needed.”
Michael Saylor, a noted Bitcoin advocate, said he “would be happy” to offer to discuss the reasons and strategies with Rumble CEO. Saylor-led MicroStrategy has recently increased its Bitcoin stash to over 331,000 BTC, valued at around $30 billion, following a $4.6 billion Bitcoin acquisition.
Saylor has encouraged companies and large corporations, including Apple and Microsoft, to adopt Bitcoin as part of their financial strategies. He believes Bitcoin investments could result in handsome profits for the company’s shareholders.
The executive chairman of MicroStrategy is set to deliver a three-minute presentation to Microsoft’s board about investing in Bitcoin. The talk comes as Microsoft shareholders are considering voting on a proposal to add Bitcoin to its balance sheet, despite its board’s initial opposition.
If Rumble opts to adopt Bitcoin as part of its assets, it will follow in the footsteps of other companies that have embraced the asset this year, including Metaplanet, Genius Group, Cosmos Health, Thumzup Media, and LQR House.
Cosmos Health has adopted a strategy to add both Bitcoin and Ethereum to its treasury reserves. Specific details on the value of these acquisitions have not been disclosed.
Thumzup Media has also committed to acquiring Bitcoin as part of its financial strategy. The company’s board recently approved to acquire up to $1 million in Bitcoin.
Inspired by MicroStrategy, Metaplanet has aggressively bought Bitcoin since earlier this year. The Japanese public company has amassed 1,142 BTC, valued at $105 million at Bitcoin current prices.
Rumble Stock Surges 9%
Rumble’s stock saw an uptick briefly after CEO Chris Pavlovski teased potential Bitcoin adoption as part of the company’s financial strategy.
According to data from Yahoo Finance, Rumble’s shares rose by approximately 9%, recovering from earlier declines during the trading session. By the end of the day, the stock had settled with a 3.3% gain.
MicroStrategy’s stock and Bitcoin also hit a new record high on Tuesday. Shares of MicroStrategy soared almost 12%, hitting as much as $430 at market close. Meanwhile, CoinGecko data shows that Bitcoin broke through the $94,000 during the day, before retreating to $92,500 at press time.
Rumble’s financial position is strong, with around $132 million in cash and cash equivalents as of September 30, 2024. The company also reported $25.1 million in revenue for the third quarter, recording a 39% year-over-year return.
While many companies are rushing to adopt Bitcoin, BlackRock surprisingly shows skepticism. The leading fund manager behind the world’s largest Bitcoin ETF reportedly does not endorse the idea of adopting Bitcoin as a strategic reserve asset.
Unlike BlackRock, VanEck’s head of digital asset research Matthew Sigel has publicly supported the creation of a strategic Bitcoin reserve in the US.
US president-elect Donald Trump is expected to establish a national strategic Bitcoin reserve, a proposal that he made during his speech at the 2024 Bitcoin Conference.
Senator Cynthia Lummis has called for public support to strengthen the push for her proposed bill, which would enable the U.S. government to acquire 1 million Bitcoin, which represents about 5% of the total Bitcoin supply.