Rumble Explores Bitcoin Investment, Stock Reacts to MicroStrategy Playbook
Rumble, the video-sharing platform, saw its stock price jump 9% after CEO Chris Pavlovski hinted at the possibility of adding Bitcoin to the company's balance sheet. The idea, sparked by a Twitter poll and a subsequent conversation with MicroStrategy's Michael Saylor, highlights a growing trend of companies exploring Bitcoin as a strategic reserve asset.
A X Poll and a Chat with Saylor: The Genesis of Rumble's Bitcoin Idea
Pavlovski initiated the discussion with a tweet on November 19, asking his followers whether Rumble should invest in Bitcoin. He followed up with a poll, inviting users to vote on the idea. MicroStrategy Chairman and prominent Bitcoin advocate Michael Saylor chimed in, not only endorsing the idea but also offering to guide Pavlovski and Rumble through the process. Pavlovski expressed interest, stating he would discuss the matter further with Saylor privately.
Market Reacts: Rumble Stock Sees a 9% Bump
Following this exchange, Rumble's stock (RUM) quickly climbed to $5.93, though it has since retraced some of those gains, currently trading at $5.68. This price movement suggests that investors are receptive to the idea of Rumble adopting a Bitcoin strategy.
Following the Leader: The MicroStrategy Effect on Corporate Treasuries
The potential for further stock rallies if Rumble embraces Bitcoin is supported by the performance of other publicly traded companies that have adopted similar strategies. Metaplanet, for example, has seen its stock (3350.T) surge over 450% since May and 1,313% year-to-date after adopting MicroStrategy's Bitcoin playbook. MicroStrategy's own stock (MSTR) has also outperformed, up 528% year-to-date, even surpassing Bitcoin's 109% gain.
A Growing Trend: Bitcoin as a Corporate Reserve Asset
Rumble isn't alone in considering Bitcoin for its treasury. E-commerce platform LQR House recently announced plans to adopt Bitcoin as a reserve asset, starting with a $1 million purchase. Pharmaceutical firm Cosmos Health also revealed its intention to hold Bitcoin and Ethereum as part of its reserves. Even some U.S. states, like Pennsylvania and Florida, have proposed allocating a portion of their funds to Bitcoin.