Rumble plans to buy up to $20 million in Bitcoin in new financial strategy | Wilnesh News

rumbleThe conservative-focused video platform said late Monday it would begin allocating some of its excess cash reserves to Bitcoin and purchase up to $20 million in cryptocurrency.

Shares rose more than 2% in after-hours trading.

“We believe the world is still in the early stages of Bitcoin adoption,” Rumble Chairman and CEO Chris Pavlovski said in a statement. statement on Monday. “Unlike any government-issued currency, Bitcoin will not be diluted by endless money printing, making it a valuable inflation hedge and an excellent addition to our treasury.”

“We are also excited to strengthen our ties to cryptocurrencies and strengthen our efforts to become the leading video and cloud services platform for the cryptocurrency community,” he added.

The move puts Rumble in the same company as MicroStrategy, which began an aggressive Bitcoin buying strategy in 2020. Tesla and clogged Also purchased before Bitcoin. Two smaller companies have made the same move this year: Semler Scientific in May and Acurx Pharmaceuticals last week.

Given its popularity among conservatives, “Boom” is seen as a play relevant to Donald Trump’s re-election. The YouTube alternative is set to go public in 2022 through a special purpose acquisition company owned by Cantor Fitzgerald CEO Howard Lutnick. last weekLater, President-elect Trump selected Lutnick to serve as U.S. Secretary of Commerce.

Rumble is up nearly 63% this year, and the stock gained 42% last year.

Bitcoin itself came close to the $100,000 milestone last week, only to retreat on Monday. It was last down more than 3% at around $93,000, but the flagship cryptocurrency is expected to reach the $100,000 mark before the end of the year. By 2024, this number will more than double.

With Trump’s incoming administration expected to take a pro-crypto stance, investors are keeping a close eye on the next big company to start buying Bitcoin. MicroStrategy chairman and Bitcoin evangelist Michael Saylor said at an X Spaces event last week that he plans to pitch his Bitcoin vault strategy to Microsoft’s board of directors in December.

This year, the theme has expanded to the government level, with Sen. Cynthia Loomis (R-Wyo.) proposing the creation of a National Strategic Bitcoin Reserve. This summer, Trump also mentioned a potential national Bitcoin stockpile.