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Rumble shares rise as CEO considers $132M Bitcoin move

Rumble shares rise as CEO considers $132M Bitcoin move

GrafaGrafa2024/11/20 13:37
By:Liezl Gambe

Shares of Rumble Inc. surged by 9% to reach $6.20 in after-hours trading on November 19, following an announcement by CEO Chris Pavlovski that he is considering adding Bitcoin (CRYPTO:BTC) to the company’s balance sheet.

Pavlovski’s question on X, asking whether Rumble should purchase Bitcoin, garnered significant support from the crypto community, with approximately 29,000 respondents voting “Yes.”

Jack Mallers, CEO of Bitcoin payment provider Strike, responded to Pavlovski’s query, stating, “Yes. Happy to help if needed.”

MicroStrategy Chairman Michael Saylor, known for his Bitcoin advocacy, offered to discuss the strategy with Pavlovski, and Pavlovski appears to have accepted the offer.

Rumble, a platform known for its lenient content moderation policies and cloud services supporting Truth Social, reported $132 million in cash, cash equivalents, and marketable securities as of September 30, 2024.

The company, which went public on Nasdaq in September 2022, has around 67 million monthly active users.

Rumble shares had risen 2.5% to close at $5.68 on November 19, before climbing further in after-hours trading.

Despite the positive response to the potential Bitcoin acquisition, Rumble recently faced challenges following its third-quarter earnings report.

The company reported $25 million in revenue for Q3, a 39% increase year-on-year but still 14% below analysts' expectations.

Additionally, its earnings per share missed estimates by 20%.

If Rumble proceeds with the Bitcoin purchase, it would join other companies that have recently diversified their reserves through cryptocurrency.

Genius Group recently invested $10 million to buy 110 Bitcoin, aiming to hold 90% of its reserves in Bitcoin.

Japan’s Metaplanet increased its holdings by purchasing $11.3 million in Bitcoin, while medical device firm Semler Scientific expanded its Bitcoin assets to 1,273 BTC, valued at $17.7 million.

At the time of reporting, the Bitcoin (BTC) price was $91,748.77.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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