Rumble, a video-sharing network commonly regarded as a YouTube competitor, recently took a major step into the world of digital assets. In line with its previously declared bitcoin cash plan, the company revealed the acquisition of approximately 188 BTC worth a total of $17.1 million. This move testifies to its seriousness in using digital assets in line with its business plan.
BREAKING: Rumble Announces Purchases of $17.1 Million in Bitcoin in Accordance with Previously Announced Bitcoin Treasury Strategy
“The company has added approximately 188 Bitcoin to its treasury at an average price of approximately $91,000 per coin”
Rumble CEO sees bitcoin as a hedge against inflation
According to Rumble CEO Chris Pavlovski, the man behind the purchase, bitcoin could be a hedge against inflation. Unlike traditional currency, which continues to be issued without restriction. Although the value of bitcoin fluctuates but shows an upward trend over a long period, Rumble seems to want to be more financially flexible.
Conversely, this is not the first investment made by a media or technology company. Although at higher valuations, other large companies have also followed similar actions.
Technology, gaming and healthcare companies bet on bitcoin
Rumble’s stock reminds us of the investment approach used by Metaplanet, a Japanese company that recently added 162 BTC to its portfolio. This brought its total holdings to 3,050 BTC, as previously reported. To increase its bitcoin holdings, it even issued a 2 billion yen interest-free bond. This is really bold, and shows how seriously they take Bitcoin as a long-term asset.
Meanwhile, Hong Kong-based investment company HK Asia Holdings Limited has started to allocate some of its capital to Bitcoin. It paid around $96,150 for one BTC on February 16; then, on February 20, it added 7.88 BTC worth $761,705. It seems that these companies are now considering Bitcoin as a means of diversifying their assets.
The gaming sector is also following this trend. Chinese game developer Booya Interactive bought bitcoin for the first time in January 2024 and continued to increase its reserves until the end of the year.
In the healthcare sector, California-based Semler Scientific has also made significant bitcoin investments. Currently holding 1,873 BTC, they represent 35% of the company’s market capitalization. CEO Eric Semler is a fervent supporter of bitcoin, which he sees as a good way of diversifying assets.
Bitcoin: more than just a speculative asset?
Examining this trend raises the question of not only who is buying bitcoin, but also how much and for what purpose. Bitcoin seems to be increasingly viewed as a respectable type of investment rather than simply a speculative asset. As more and more major companies rely on bitcoin, the crypto-currency’s story as a reserve asset is beginning to strengthen.
At the time of writing, BTC is trading at around $83,172.53, up 2.02% over the past 24 hours, but still corrected by 9.19% over the past 7 days.