Buy Bitcoin, stock price goes up 80%: Rumble follows ‘MicroStrategy’ strategy
2025.01.22 12:25
Rumble Inc. (RUM), a video-sharing platform, revealed that it had purchased its first Bitcoin (BTC) just ahead of Donald Trump’s inauguration event on Jan. 20, noting that “it won’t be the last” Bitcoin purchase for the company.
Source: Chris Pavlovski
The announcement appeared nearly two months after Rumble confirmed its plans to allocate $20 million from its excess cash reserves to purchase Bitcoin. The company said that their purchase will depend primarily on the wider crypto market conditions, including BTC’s price and their platform’s cash needs.
Bitcoin established a new record high of over $109,000 on Jan. 20, just ahead of Trump’s swearing-in as the 47th President of the United States. Some crypto pundits anticipate the price to reach $180,000 and beyond by 2025’s end.
Rumble stock mirrors MicroStrategy
Rumble’s foray into Bitcoin appears to be motivated by a combination of financial and strategic factors mentioned in MicroStrategy’s playbook, namely, using Bitcoin as a hedge against inflation and dollar devaluation.
Source: X
MicroStrategy has accumulated 450,000 BTC since 2020, amounting to over 2% of the total BTC supply. The Nasdaq-listed firm has effectively tied its corporate identity and stock performance to Bitcoin’s price movements.
That is reflected in the unique correlation between them and Bitcoin. Both MicroStrategy and Rumble have vastly outperformed BTC prices since announcing their Bitcoin acquisition strategies.
To illustrate, MSTR has risen by around 2,650% since buying its first Bitcoin in August 2020, outperforming BTC/USD, which has grown over 850% in the same period.
MSTR vs. BTC/USD since MicroStrategy’s first Bitcoin buy. Source: TradingView
Meanwhile, RUM has jumped by over 80% since announcing its Bitcoin acquisition plans in November. Bitcoin price has grown by only 15.50% since.
RUM vs. BTC/USD performance comparison since November. Source: TradingView
It shows that most investors are willing to pay a premium for MSTR because they expect the company to continue increasing its BTC holdings over time, particularly if BTC enters another bullish phase.
Related: Tether pours $775M into video-sharing platform Rumble
So far, the same fundamental has favored the Rumble stock. Its CEO, Chris Pavlovski, announced on Dec. 31 that it plans to pay its content creators in Bitcoin, creating further underlying demand for the cryptocurrency.
Source: X
Publicly traded companies eye “Bitcoin reserve”
Several publicly traded companies have decided to add Bitcoin to their balance sheets after Trump promised to establish a US Bitcoin Reserve.
For instance, Nasdaq firm, Critical Metals Corp ($CRML), announced a $500 million Bitcoin treasury plan hours after Rumble’s announcement.
Other notable examples include KULR Technology, a firm listed on the New York Stock Exchange, Matador Technologies, a Canadian tech company, and biopharmaceutical firm Quantum BioPharma, all of which have revealed buying BTC.
Japanese investment firm Metaplanet also made headlines with its largest Bitcoin purchase to date, acquiring nearly 620 BTC in the past few days.
Top Bitcoin holding companies. Source: BitcoinTreasuries.NET
Furthermore, MicroStrategy wants to purchase an additional $42 billion worth of Bitcoin in the coming years.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
