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Key Notes
The supply of Bitcoin on CEXes has continued to drop to a multi-year low of below 2.3 million fueled by institutional adoption.Rumble stock has continued to rally in the recent past amid rumors of a Bitcoin acquisition.Rumble Inc (NASDAQ: RUM), a fast-growing video-sharing platform and cloud services provider, has announced a bold move toward Bitcoin BTC $93 633 24h volatility: 5.2% Market cap: $1.85 T Vol. 24h: $120.19 B adoption. According to an announcement released on Monday, the Florida-based company will allocate a portion of its excess cash reserves to Bitcoin.
The decision was made by Rumble’s board of directors, who approved the company’s plans to expand into the crypto market industry. Notably, the company will be making Bitcoin purchases of up to $20 million, depending on the market outlook.
“We believe that the world is still in the early stages of the adoption of Bitcoin, which has recently accelerated with the election of a crypto-friendly US presidential administration and increased institutional adoption. Unlike any government-issued currency, Bitcoin is not subject to dilution through endless money-printing, enabling it to be a valuable inflation hedge and an excellent addition to our treasury,” Rumble Chairman and CEO Chris Pavlovski, noted.
Impact of Bitcoin Strategy on Rumble
The decision by Rumble to adopt Bitcoin as part of its strategic reserve will play a crucial role in its long-term growth prospects. The $2.85 billion company has seen its stock market grow more than 62 percent on speculation of Bitcoin adoption for its balance sheet.
With the plan expected to be actualized in the near term, the company’s stock market will continue to rally in tandem with the ongoing Bitcoin rally. In the past five days, RUM stock rallied over 28 percent to trade at about $7.6 on Tuesday.
A similar plan has been actualized by other companies led by MicroStrategy Inc (NASDAQ: MSTR), Semler Scientific Inc. (NASDAQ: SMLR), Hut 8 Corp. (NASDAQ: HUT), and Metaplanet Inc. As Coinspeaker previously noted, MSTR stock has rallied to price discovery in tandem with Bitcoin, which recently rallied exponentially fueled by the victory of President-elect Donald Trump and other pro-crypto leaders.
On Monday, MicroStrategy announced the acquisition of 55.5K Bitcoins, thus currently holding over 386.7K BTC units. Semler Scientific announced the acquisition of 297 BTCs, worth over $29 million, thus holding more than 1,570 BTCs.
Meanwhile, Hut 8 announced on Monday that it already holds 9.1K Bitcoins on its balance sheet and plans are underway to add more in the near future.
Market Picture
The ongoing mainstream adoption of Bitcoin by institutional investors has drastically reduced the overall BTC supply on centralized exchanges. According to the latest market data by CoinGlass, the overall supply of BTC on CEXes has dropped to a multi-year low of below 2.3 million in the past few months.
Consequently, Bitcoin price is well positioned to continue with its macro bull run, despite the short-term correction. Furthermore, the spot Gold ETFs have been bleeding to spot BTC ETFs in the recent past amid the heightened adoption by nation-states.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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