Conservative-Oriented Video Platform Rumble
'Will there be a second MicroStrategy?'
Conservative-leaning video platform company Rumble has decided to invest part of its excess cash holdings in Bitcoin. Investors are paying attention to companies adopting Bitcoin as a reserve asset ahead of the launch of the 'pro-cryptocurrency' second Trump administration.
Chris Pavlovski, CEO of Rumble, stated in a press release on the 25th (local time), "We believe the world is still in the early stages of Bitcoin adoption," and announced plans to purchase up to $20 million (approximately 28.074 billion KRW) worth of Bitcoin. He added, "We are pleased to strengthen our relationship with cryptocurrency and enhance our efforts to become a leading video and cloud service platform for the cryptocurrency community."
CEO Pavlovski emphasized, "Unlike government-issued currencies, Bitcoin is not diluted through endless money printing, making it a valuable inflation hedge and an excellent asset to add to the treasury."
Rumble is known as a video platform popular among conservative supporters. Amid controversies over content censorship on major video platforms like YouTube, it has established itself as a platform advocating freedom of expression. It is also known that Vice President-elect JD Vance holds some shares in Rumble.
US economic media CNBC analyzed that Rumble has adopted a strategy similar to MicroStrategy, which has been purchasing Bitcoin since 2020. US enterprise software company MicroStrategy aggressively bought Bitcoin using company operating funds, stock, and convertible bond issuance proceeds. The company's stock price surged from $63 at the end of last year to $421.88 on the 22nd, rising about sevenfold this year.
As President-elect Donald Trump pledged to make Bitcoin a strategic asset, the market is paying more attention to companies buying Bitcoin. For this reason, Rumble's stock, which closed up 12.63% on the New York Stock Exchange that day, jumped 3.97% in after-hours trading following the Bitcoin investment announcement.
However, some point out that expectations for Bitcoin-investing companies are excessive. Citron Research announced on the 21st that the stock price increase of MicroStrategy, which is disconnected from its fundamentals, cannot be justified and announced a short-selling plan, causing the stock price to plunge 16% on the same day.
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