By Nermeen Nabil Khear TLDR
- Rumble, a YouTube rival, made its first Bitcoin purchase in January 2025 as part of a $20M investment strategy
- The purchase amount wasn’t disclosed but is part of their November 2024 announcement to allocate up to $20M of cash reserves to Bitcoin
- Tether recently invested $775M in Rumble, starting with a $250M cash investment
- Rumble joins other public companies like MicroStrategy in adopting Bitcoin treasury strategies
- CEO Chris Pavlovski indicated more Bitcoin purchases would follow
Video sharing platform Rumble has made its first Bitcoin purchase, marking the start of its previously announced $20 million cryptocurrency investment strategy. The purchase, completed on Friday, January 17, 2025, represents the company’s initial step into cryptocurrency treasury management.
Rumble CEO Chris Pavlovski announced the purchase through a post on X, stating “On Friday, Rumble $RUM made its first-ever purchase of bitcoin. It won’t be the last.” The exact amount of Bitcoin purchased was not disclosed by the company.
On Friday, Rumble $RUM made its first ever purchase of Bitcoin $BTC.
It won’t be the last.
— Chris Pavlovski
(@chrispavlovski) January 20, 2025
The move follows Rumble’s November 2024 announcement of plans to allocate up to $20 million of its cash reserves into Bitcoin. At the time, Pavlovski expressed his view that Bitcoin adoption was still in its early stages.
Rumble, which trades on the Nasdaq under the ticker RUM, has positioned itself as an alternative to YouTube, with a focus on free speech principles. The Canadian-based company has gained popularity among American conservative users.
The platform recently received substantial backing from stablecoin issuer Tether, which committed to a $775 million investment in December 2024. The investment began with an initial $250 million cash injection. Tether is known for issuing USDT, currently the fourth-largest cryptocurrency by market capitalization.
This treasury strategy mirrors that of MicroStrategy, a software company that began purchasing Bitcoin in 2020. MicroStrategy has accumulated 450,000 Bitcoin, valued at approximately $46.3 billion at current prices of $103,000 per Bitcoin.
The video platform’s decision comes at a time when Bitcoin’s price has shown strong performance, though some Bitcoin-holding companies have experienced market volatility. MicroStrategy’s stock, for instance, has seen a 45% decline from its November peak, dropping from $543 to $300.
Rumble’s entry into Bitcoin investment represents part of a broader trend of public companies diversifying their treasury strategies to include cryptocurrency. Other public companies that have adopted similar approaches include MARA Holdings, Riot Platforms, and Hut 8.
The company’s Bitcoin strategy involves using excess cash reserves for cryptocurrency purchases, indicating a long-term approach to Bitcoin investment rather than short-term trading.
While the initial purchase amount remains undisclosed, the $20 million allocation limit provides a framework for understanding the scale of Rumble’s potential Bitcoin investment strategy.
The timing of Rumble’s first Bitcoin purchase comes approximately two months after their initial strategy announcement, suggesting a measured approach to implementation.
Rumble’s decision to invest in Bitcoin follows several months after receiving Tether’s investment commitment, showing a continued expansion of the company’s involvement in the cryptocurrency space.
The platform maintains its primary focus on video sharing services while adding Bitcoin to its treasury management strategy, indicating a diversified approach to corporate financial management.
The post Video Platform Rumble Initiates Bitcoin Strategy with First Purchase appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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