Rumble eyes Bitcoin for its balance sheet, stock soars in after-hours trading

Rumble, a video-sharing platform, is exploring the idea of adding Bitcoin to its balance sheet, prompting significant market activity. The company’s CEO, Chris Pavlovski, asked on X whether the firm should add BTC. The poll attracted many, with the majority saying “Yes.”

Additionally, Rumble Inc (RUM) shares surged by 9% in after-hours trading on Nov. 19, reaching a high of $6.20.

Bitcoin advocates back Rumble’s potential BTC move

Prominent Bitcoin advocates were quick to weigh in. Jack Mallers, CEO of Bitcoin payment firm Strike, agreed that Rumble should add Bitcoin to its balance sheet and noted he would gladly help if needed. 

Michael Saylor, chairman of MicroStrategy, also offered to advise Pavlovski, who appeared receptive to the suggestion.

The poll has garnered strong support from the crypto community. 37,516  respondents have voted, with 93.8% saying yes and 6.2% have said no.

According to Google Finance, Rumble shares closed up 2.5% at $5.68 before peaking at $6.20 after hours. They eventually stabilized at $5.78, a 1.76% increase since the market close.

Rumble considers Bitcoin adoption as it expands its financial footprint

Headquartered in Florida and Ontario, Rumble operates a video-sharing platform known for its minimal content moderation. Its cloud services division also hosts Truth Social, the social media platform owned by Donald Trump.

Rumble boasts 67 million monthly active users and went public on Nasdaq in September 2022. As of September 30, 2024, its balance sheet included approximately $132 million in cash, cash equivalents, and marketable securities.

The company generated $25 million in revenue during Q3 2024, a 39% year-over-year increase. However, recent financial results missed analyst expectations, with revenue falling short by 14% and earnings per share (EPS) underperforming by 20%.

If Rumble follows through, it will join a growing list of companies turning to Bitcoin this year.

On November 18, artificial intelligence firm Genius Group implemented its “Bitcoin-first” strategy, acquiring 110 Bitcoin for $10 million. The company aims to allocate 90% of its reserves to Bitcoin. Similarly, Japan-based MetaPlanet purchased an additional $11.3 million worth of Bitcoin, bringing its total holdings to 1,142.2 BTC, per Bitcoin Treasuries data.

Medical device manufacturer Semler Scientific recently increased its Bitcoin holdings, adding $17.7 million to reach 1,273 BTC.

Rumble’s potential Bitcoin adoption highlights the cryptocurrency’s growing role as a reserve asset, even as companies in various sectors weigh the risks and rewards of holding digital currencies.

A Step-By-Step System To Launching Your Web3 Career and Landing High-Paying Crypto Jobs in 90 Days.