Buy Bitcoin, Stock Price Rises 80%: Rumble Follows ‘MicroStrategy’ Strategy

Video sharing platform Rumble Inc. (RUM) said it has purchased its first Bitcoin (BTC) ahead of Donald Trump’s inauguration on January 20th. company.

The announcement comes nearly two months after Rumble confirmed plans to allocate $20 million from its excess cash reserves to purchase Bitcoin. The company said their purchases will largely depend on broader cryptocurrency market conditions, including the price of BTC and demand for cash on the platform.

Bitcoin hit a record high of over $109,000 on January 20, shortly before Trump’s inauguration as the 47th president of the United States. Some cryptocurrency experts expect the price to reach more than $180,000 by the end of 2025.

Rumble Stock reflects MicroStrategy.

Rumble’s foray into Bitcoin appears to be motivated by a combination of financial and strategic factors mentioned in MicroStrategy’s playbook, namely using Bitcoin as a hedge against inflation and a falling dollar.

MicroStrategy has accumulated 450,000 BTC since 2020, representing more than 2% of the total BTC supply. The Nasdaq-listed company has effectively linked its corporate identity and stock price performance to Bitcoin price movements.

This is reflected in the unique correlation between them and Bitcoin. MicroStrategy and Rumble have significantly outperformed BTC prices since announcing their Bitcoin acquisition strategies.

For example, MSTR is up about 2,650% since purchasing my first Bitcoin in August 2020, outpacing BTC/USD, which has grown by more than 850% over the same period.

Meanwhile, RUM has surged more than 80% since announcing plans to acquire Bitcoin last November. Since then, the Bitcoin price has only risen 15.50%.

This shows that most investors are willing to pay a premium for MSTR as they expect the company to continue to increase its BTC holdings over time, especially if BTC enters another bullish phase.

relevant: Tether invested $775 million in video-sharing platform Rumble.

The same underlying principles have favored Rumble stock so far. CEO Chris Pavlovski announced on December 31 that he plans to pay content creators in Bitcoin, creating fundamental demand for the cryptocurrency.

Listed companies pay attention to “Bitcoin holdings”

Several publicly traded companies have decided to add Bitcoin to their balance sheets after President Trump pledged to create a U.S. Bitcoin reserve fund.

For example, Nasdaq company Critical Metals Corp ($CRML) announced a $500 million Bitcoin treasury plan just hours after Rumble’s announcement.

Other notable examples include KULR Technology, a company listed on the New York Stock Exchange, Canadian technology company Matador Technologies, and biopharmaceutical company Quantum BioPharma, which have all disclosed BTC purchases.

Japanese investment firm Metaplanet also made headlines with its largest Bitcoin purchase to date, acquiring nearly 620 BTC in the past few days.

Additionally, MicroStrategy intends to purchase an additional $42 billion worth of Bitcoin over the next few years.

This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.