Rumble (NASDAQ:RUM), the video-sharing platform and cloud services provider, announced that its Board of Directors has approved a corporate treasury diversification strategy of allocating “a portion of the company’s excess cash reserves to Bitcoin.”
This move emphasizes Rumble’s belief in Bitcoin (BTC) as a valuable tool for strategic planning and is designed to “accelerate the company’s expansion into cryptocurrency.”
Rumble’s Bitcoin allocation strategy will reportedly include purchases, “at the discretion of the company, of up to $20 million.”
Rumble Chairman and Chief Executive Officer Chris Pavlovski said that they believe that the world is still in the early stages of the adoption of Bitcoin, which has recently “accelerated with the election of a crypto-friendly U.S. presidential administration and increased institutional adoption.” They added that 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,”
Pavlovski further noted that they are also looking forward to strengthening their ties with crypto and to “bolster their efforts to become the leading video and cloud services platform for the crypto community.”
As noted in the update from Rumble, the actual timing and value of Bitcoin purchases, if any, under the allocation strategy will “be determined by management in its discretion and will depend on several factors, including, among others, general market and business conditions, the trading price of Bitcoin and the anticipated cash needs of Rumble.”
As clarified in the announcement, the allocation strategy “may be suspended, discontinued or modified at any time for any reason.”
As stated in a blog post, Rumble is described as a “high-growth” video platform and cloud services provider that is creating “an independent infrastructure.”
Rumble’s mission is to focus on restoring the internet to its roots by “making it free and open once again.”
