Key Takeaways
- Rumble purchased 188 Bitcoin for $17.1 million at $91K per coin.
- The investment is part of Rumble's plan to allocate up to $20 million to Bitcoin.
- Tether previously invested $775 million in Rumble last year.
Nasdaq-listed video-sharing platform Rumble (RUM) has acquired 188 BTC for $17.1 million, the company announced.
The purchase was made at an average price of $91,000 per Bitcoin.
Strategic financial move
The move aligns with Rumble’s previously disclosed plan to allocate up to $20 million of its cash reserves to Bitcoin.
CEO Chris Pavlovski emphasized that holding Bitcoin serves as a hedge against inflation and avoids the dilution risks associated with government-issued currencies.
Pavlovski stated:
These holdings have the potential to serve as a valuable hedge against inflation and will not be subject to dilution like so many overprinted government-issued currencies.
Future purchases & market conditions
Rumble noted that future Bitcoin purchases would depend on factors such as market conditions, Bitcoin’s price, and the company’s cash flow requirements.
Tether’s investment & market reaction
The company’s investment in Bitcoin comes months after stablecoin issuer Tether took a $775 million stake in Rumble late last year.
Following the announcement, Rumble’s stock price closed down 2.38% in the last trading session but saw a nearly 4% increase in pre-market trading, reaching $8.10.
