Rumble Inc. (NASDAQ:RUM) saw a 5.75% rise in pre-market trading on Tuesday, as per Benzinga Pro, following the announcement of a new Bitcoin (CRYPTO: BTC) treasury strategy.
What Happened: According to an announcement made Monday, Rumble's board has approved a plan to invest a portion of its surplus cash reserves into Bitcoin, aligning with the cryptocurrency's record-breaking performance.
Meanwhile, Bitcoin dropped to 92,325.34 during pre-market hours after failing to break the $100,000 level.
The strategy involves potential investments of up to $20 million, with the company having discretion over the timing and amount. This could translate to acquiring approximately 212 Bitcoins at current market prices. However, the management will determine the actual purchase based on market conditions and Bitcoin's price.
This move is part of Rumble's broader strategic initiative to explore the cryptocurrency market. The decision reflects a growing trend among companies to diversify their treasury holdings with digital assets, especially during periods of significant price movements in the crypto market.
Why It Matters: Rumble's decision to invest in Bitcoin is part of a broader strategy to expand its presence in the digital landscape. Recently, Rumble announced a partnership with popular streamer Dr. Disrespect, who will provide exclusive content to Rumble Premium and lead Rumble Gaming as an advisor. This move underscores Rumble's commitment to gaming and cryptocurrency expansion.
Meanwhile, MicroStrategy Inc. (NASDAQ:MSTR), MARA Holdings Inc (NASDAQ:MARA) and some other companies that hold Bitcoin have experienced a downward pull after Bitcoin's slump.
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