The United States-based video-sharing platform and cloud services provider Rumble has joined the institutional crypto and bitcoin adoption trend by implementing a Bitcoin Treasury Strategy. The company’s board has decided to diversify its excess cash holdings, spending up to $20 million to acquire BTC from the open market.
The latest move highlights the growing institutional confidence as Rumble has followed in the footsteps of other U.S. firms, including MicroStrategy, Semler Scientific, and Marathon Digital.
Rumble Embraces Bitcoin
According to the company’s latest release, bitcoin is an essential tool for strategic planning, which led to its decision to adopt the crypto as a reserve asset.
Rumble Chairman and CEO Chris Pavlovski revealed that the company’s decision was fueled by the U.S. election of a pro-crypto President, Donald Trump, who has taken steps to boost crypto adoption. He expressed that the world is still in the early stages of bitcoin endorsement, so his company shouldn’t miss out.
Since it has a fixed supply, Pavlovski also explained that BTC is not prone to periodic new money printing like other government-controlled fiat currencies. Therefore, it is an excellent tool for dodging the effects of inflation.
“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. We are also excited to strengthen our ties with crypto and to bolster our efforts to become the leading video and cloud services platform for the crypto community,” he commented.
While the company plans to spend $20 million on bitcoin purchases, it is not buying it immediately. Rumble’s management will consider various factors, including business conditions, the company’s cash needs, and the trading price of bitcoin. The strategy is also prone to amendment or suspension at any time in the future.
U.S. Institutions Embrace BTC
U.S. business intelligence firm MicroStrategy has set the pace of institutional Bitcoin adoption since 2020. Unlike Rumble, MicroStrategy is not concerned about the trading price of bitcoin. Its chairman, Michael Saylor, continues to purchase BTC for the firm. It got its last 55,500 units at an average price of $97,862 and now holds 386,700 BTC.
Similarly, Marathon Digital, a U.S. Bitcoin miner, acquired its last 5,771 BTC at an average price of $95,554, raising its holdings to 33,875.
Meanwhile, Fred Thiel, CEO of Marathon Digital, has expressed that the influx of many institutions into the crypto ecosystem would push the crypto upwards in no distant time.
