Rumble's New Treasury Plan: Betting Big on Bitcoin

Rumble, a video platform with a conservative following, is making headlines for its bold new treasury strategy. The company recently announced that it'll allocate a portion of its excess cash to buy bitcoin, with a cap of $20 million. This move isn't surprising, given the growing interest in cryptocurrencies. Rumble's CEO, Chris Pavlovski, believes that bitcoin is a strong hedge against inflation, thanks to its resistance to money printing. The company isn't alone in this venture. MicroStrategy, Tesla, and Block have all taken similar steps. This year, even smaller companies like Semler Scientific and Acurx Pharmaceuticals have followed suit. Rumble's decision to invest in bitcoin could also be linked to its ties with Donald Trump's reelection campaign. The platform went public in 2022, backed by Cantor Fitzgerald's CEO, Howard Lutnick, who's now been chosen as the U. S. Commerce Secretary by President-elect Trump. Bitcoin's price has been on a rollercoaster ride, recently dropping below $93, 000 after nearing the $100, 000 mark. However, experts expect it to hit that milestone by the end of the year. With a pro-crypto stance expected from Trump's incoming administration, more companies might join Rumble in adopting bitcoin. Even government officials are considering a national strategic bitcoin reserve, as proposed by Sen. Cynthia Lummis. This trend shows that cryptocurrencies are becoming more mainstream. But it also raises questions. Is bitcoin really a safe investment? And should companies be risking large amounts of cash on a volatile currency?