Rumble Shares Rise as CEO Eyes Bitcoin Strategy Amidst Mixed Earnings Report
November 21, 2024Despite these challenges, Rumble's primary business focus remains its streaming platform, and investors should not overlook the company's core operations.
Ultimately, the decision to adopt Bitcoin will require approval from Rumble's board of directors, despite strong public support.
The company's CEO, Chris Pavlovski, expressed interest in this move, which coincided with a rise in Rumble's shares during U.S. trading on November 19, 2024.
To gauge public sentiment, Pavlovski utilized a poll on X (formerly Twitter), which revealed that over 90% of respondents supported the proposal to add Bitcoin to Rumble's treasury.
Prominent Bitcoin advocate Michael Saylor responded positively to the poll, offering to discuss Bitcoin investment strategies with Pavlovski.
However, Rumble's latest quarterly report showed sales below Wall Street expectations, raising concerns about its long-term growth and user engagement.
This growing interest in Bitcoin among companies indicates an increasing acceptance of cryptocurrency and blockchain technology in mainstream business practices.
Rumble reported $25.1 million in revenue for the third quarter of 2024, reflecting a 39% increase year-on-year, although it still missed analyst estimates.
Following the initial excitement around the Bitcoin proposal, Rumble's stock experienced a slight rally but cooled after reaching $6, as it had previously suffered a 25% drop due to disappointing earnings.
Rumble Inc., a video-sharing platform with a significant user base of 67 million monthly active users, is considering adding Bitcoin to its balance sheet as part of its investment strategy.
If Rumble proceeds with the acquisition, it would join other companies like Genius Group and Metaplanet that have recently invested in Bitcoin, reflecting a broader trend of corporate adoption of cryptocurrency.
Despite potential investments in cryptocurrency, Rumble faces challenges with its current user growth and monetization levels, which could impact its future viability.
Summary based on 5 sources
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Sources
The Motley Fool • Nov 20, 2024
Why Rumble Stock Jumped TodayCoinDesk • Nov 19, 2024
Rumble Stock Rises as CEO Teases Bitcoin AdoptionAMBCrypto • Nov 20, 2024
Bitcoin: Rumble stock rallies 9% as founder mulls adding BTC to treasury