- Rumble purchases Bitcoin, starting a $20M crypto reserve strategy to diversify assets.
- Tether-backed Rumble sees an 80% stock rise after $775M investment in December.
- Rumble partners with El Salvador for cloud services as it expands crypto ventures.
Rumble the Tether-backed and Nasdaq-listed video sharing platform has confirmed its first BTC purchase as it looks to diversify its reserves. Rumble’s CEO and founder, Chris Pavlovski, announced the acquisition on Friday, January 17, thus, confirming the company’s intent to adopt cryptocurrency in its treasury.
Rumble’s Bitcoin Investment Plan Takes Shape
In November, Rumble said it planned to spend as much as $20 million purchasing Bitcoin. Pavlovski noted that cryptocurrency is less prone to inflation and that the growing acceptance by institutional investors is a factor in the move. Pavlovski, however, did not reveal the amount of money that was bought in this first tranche but said that this is just the beginning of a broader investment strategy.
The move aligns Rumble with prominent public companies, such as MicroStrategy and Marathon Digital, which have adopted Bitcoin for treasury management. These strategies have attracted investors seeking indirect exposure to Bitcoin through equity markets.
Tether’s Strategic Investment Fuels Rumble’s Growth
In December, Tether Limited, the largest issuer of stablecoins, invested $775 million in Rumble. Of this, $250 million was to fund the platform’s growth. Rumble’s stock has increased 80% since its investment, trading at $12.90 at press time.
Rumble has positioned itself as a free speech and an alternative to big tech platforms popular among American conservatives and has over 70 million active monthly users. Its growing popularity and partnerships highlight its emergence as a viable alternative to established video-sharing platforms.
Strengthening Crypto Ties with El Salvador Partnership
Rumble expanded its footprint in the cryptocurrency space through a recent cloud services partnership with the government of El Salvador. This agreement aligns with Tether’s growing presence in Central American, where it is establishing its headquarters. Rumble’s cloud services division, which hosts Truth Social—former U.S. President Donald Trump’s platform—further underscores its influence in the political and media arenas.
The timing of Rumble’s Bitcoin purchase coincides with the inauguration of U.S. President Donald Trump, who has expressed support for a domestic cryptocurrency industry. Reports suggest Trump’s administration may explore creating a strategic reserve of digital assets, potentially fostering further adoption.
The post Rumble Makes First Bitcoin Purchase as Part of Treasury Diversification appeared first on Cryptonewsland.
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