Founder Contemplates Including Bitcoin in Company Reserves, Rumble Stocks Soar by 9%
Rumble, a popular video streaming service that competes with Twitch, experienced a 9% surge in its stock, RUM, on Tuesday during trading hours in the United States.
The spike came after the founder announced intentions to integrate Bitcoin [BTC] into the company’s treasury.
Chris Pavloski, the CEO of Rumble, conducted a poll on X (previously Twitter) to gauge market sentiment and gather feedback regarding the proposal.
Michael Saylor, known for pioneering the BTC corporate treasury approach with MicroStrategy, also helped amplify the poll through his X account, posing the question,
“Should $RUM incorporate #Bitcoin into its financial holdings?”
The outcome? Perhaps unsurprisingly, over 90% of X users favored Rumble’s inclusion of BTC in its reserves.
Nevertheless, these results do not automatically ensure the addition of BTC to Rumble’s financial records. Being a publicly traded company, its board of directors must vote to either approve or reject such a proposition.
Following MicroStrategy’s adoption of the BTC strategy in 2020, the company’s shares, MSTR, have surged and outperformed all stocks on the S&P 500 Index.
This phenomenon may account for the current trend of corporate FOMO, as companies strive to emulate MSTR’s achievements for the benefit of their shareholders.
At the time of writing, RUM’s price increase had slightly subsided after reaching $6 on Tuesday.
Rumble Stock Performance Analysis
It is important to note, however, that the recent disappointing Q3 earnings results led to a nearly 25% decline in the stock price, settling around the annual support level of $5.
Whether the interest in BTC will assist in a price recovery and counteract the recent losses by aiming for $6.5 or $7 remains uncertain.