Social media video platform Rumble (RUM), perhaps best known for its commitment to free speech, took a page out of the Microstrategy (MSTR) playbook today when it announced plans to move a large portion of its cash into Bitcoin. The move did not sit so well with investors, however, who sent shares down modestly in Tuesday afternoon’s trading.
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Rumble plans to take a portion of its cash reserves—up to $20 million, noted a CNBC report—and convert said cash to Bitcoin. With Bitcoin currently up over $90,000 per coin, it might seem like Rumble is buying in at the peak, as opposed to the start, but Rumble believes there is still room for profit here.
Rumble’s CEO and chairman, Chris Pavlovski, noted, “We believe that the world is still in the early stages of the adoption of Bitcoin. 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.”
A Deal with the Doctor
Meanwhile, Rumble made something of a controversial move in extending a new deal to Guy Beahm, otherwise known as Dr. Disrespect. Beahm is a former YouTube video game streaming personality who lost both brand endorsement deals and his ability to earn money on YouTube, noted a Forbes report, following what was described as “inappropriate” messages to a minor in 2017.
Beahm will be offering exclusive content to Rumble and will also receive an equity stake in the company for said content. He will also be the head of the recently-created Rumble Gaming division, acting as an “adviser” in that context. Beahm declared that the move will come with “…no more cancel culture, no more suppression” and will be a strike back against those who “…tried to cancel us and create a false, exaggerated narrative about something from almost a decade ago.”
Is Rumble a Good Stock to Buy?
Turning to Wall Street, no analysts currently hold a position on Rumble, so instead, we turn to the last five days of trading in the stock. And the last five days have proven very good for RUM stock, as it is up 19.73% in the period. Moreover, that gain is somewhat gradual, though it really took off yesterday. Today’s losses, in fact, are comparatively minor against the gains of the last five days.
