Video platform Rumble discloses $17 million in bitcoin treasury holdings, may make additional 'strategic' purchases

Alternative video streaming platform Rumble has acquired approximately 188 bitcoins prior to the recent market selloff, according to an announcement on Wednesday. The Nasdaq-listed company purchased about $17.1 million worth of bitcoin at an average price of $91,000 per coin. 

The video-sharing platform and cloud services provider said it views this move as part of a strategic expansion into crypto and a hedge against inflation.

Rumble CEO Chris Pavlovski previously announced the company would acquire up to $20 million worth of bitcoin. It announced its first round of buying on Jan. 20, on the day of President Trump’s inauguration, though did not disclose the total amount purchased. The firm may make additional bitcoin purchases depending on market conditions and its “cash needs."

Bitcoin and other cryptocurrencies have fallen  significantly since the post-election market rally of a pro-crypto president. Analysts have attributed recent declines to macroeconomic tremors, such as the fear of a potential recession or rising inflation if Trump continues to levy tariffs on U.S. trading partners.  

“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,” Pavlovsk said in a statement. “[W]e are proud to officially hold Bitcoin as we continue to grow and engrain crypto into our company’s DNA.”

In late December, the world’s largest stablecoin issuer, Tether, made a $775 million “strategic investment” in the right-leaning streaming platform Rumble, with $250 million of the funds “to support growth initiatives.” The company previously raised funds in 2021 at a $500 million valuation, including commitments from Peter Thiel, Vivek Ramaswamy and Vice President JD Vance.

Earlier this year, the company entered into a cloud services agreement with the Government of El Salvador, where Tether is setting up a headquarters. Rumble's cloud services business hosts Trump’s majority-owned social application Truth Social.

Rumble counts approximately 70 million monthly active users and has posted net losses for the first three quarters of 2024, the last quarter it reported financial results. RUM is up over 3% to $8.10 on the day. The stock is down about 33% year-over-year.