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Business adoption of Bitcoin (BTC) continues to gain momentum with the recent emergence of video sharing platform and cloud services Rumble unveil BTC treasury strategy. The move is in line with the growing trend of companies around the world to embrace Bitcoin as a strategic asset.
Rumble announces Bitcoin treasury strategy, shares soar
YouTube rival is the latest company to jump on the Bitcoin bandwagon, with its board of directors approving a corporate treasury diversification strategy that allocates a portion of its excess cash reserves to Bitcoin.
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As part of this strategy, Rumble plans to purchase up to $20 million in Bitcoin. The company described Bitcoin as a “valuable tool for strategic planning.” Rumble CEO and Chairman Chris Pavlovsky explained:
We believe the world is still in the early stages of Bitcoin adoption, which has recently accelerated with the election of a cryptocurrency-friendly US presidential administration and increasing institutional adoption. Unlike any government-issued currency, Bitcoin is not diluted by endless money printing, enabling it to be a valuable hedge against inflation and an excellent addition to our treasury.
The company stated that its management will evaluate factors such as market conditions, Bitcoin’s trading price, and Ramble’s cash flow needs to determine the timing and amount of Bitcoin purchases. However, he emphasized that the strategy can be modified, paused or discontinued.
Interestingly, this announcement came after a poll conducted by Pavlovsky on the website X, in which he said: He asked users whether Rumble should add Bitcoin to its balance sheet. More than 93% of the 43,790 participants voted in favor of the proposal.
Rumble’s stock price rose after the announcement, reflecting investor confidence. The technology company’s shares closed at $7.31, recording a 12.63% increase in one day.
BTC as a corporate asset: a winning strategy?
Rumble’s decision to add BTC to its balance sheet reflects the approach of MicroStrategy (MSTR), the leader in Bitcoin treasury management. Yesterday, the company led by Michael Saylor open It acquired an additional 55,000 Bitcoin, bringing its holdings to $5.4 billion.
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MicroStrategy’s Bitcoin game has been a success enormously For the performance of the company’s shares. In the past year alone, MSTR has risen more than 670%, outperforming both BTC and the S&P 500 in terms of returns on investment.
Meanwhile, Japanese company Metaplanet recently crossed the 1,000 BTC mark It continues To enhance its Bitcoin holdings through frequent purchases. In addition, there is speculation about major technology giants such as Dell and Microsoft Entering the Bitcoin market could increase demand and push the asset’s price to new highs.
Recent analysis conducted by crypto experts He appears BTC could reach its long-awaited six-figure price target early next year. BTC is trading at $92,071 at press time, down 5.5% over the past 24 hours.
Featured image from Unsplash, charts from Yahoo! Finance and Tradingview.com
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