Following Microstrategy’s plan to hoard Bitcoin, many companies from various industries are following suit by investing heavily in Bitcoin as a safe investment option.
Recently, Rumble, a popular video sharing and cloud services platform, took a bold step by investing up to $20 million in Bitcoin. The company’s Board of Directors approved the plan as part of its strategy to diversify its cash reserves. This decision shows Rumble’s confidence in Bitcoin as a hedge against inflation and as a smart financial asset.
Why Bitcoin?
CEO Chris Pavlovski explained that Bitcoin stands out because it is not affected by inflation in the same way as traditional currencies. Unlike government-issued money, Bitcoin cannot be diluted by endless printing, providing solid protection against rising prices. He also pointed out that Bitcoin adoption is growing, fueled by crypto-friendly regulations and increasing interest from major institutions.
“We believe the world is still in the early days of Bitcoin adoption,” Pavlovski said, adding that now is the right time for Rumble to embrace the crypto space.
A careful approach when buying Bitcoin
Rumble’s plan isn’t just randomly buying Bitcoin. The company will closely monitor the market, taking into account the price of Bitcoin, general market trends and its own financial needs before making any purchases. This thoughtful approach helps manage the ups and downs of the cryptocurrency market while focusing on long-term benefits.
The management team will decide when and how much Bitcoin to buy based on these factors. The goal is to remain flexible while keeping the company’s finances safe.
A growing trend in enterprise crypto
Rumble isn’t the only one betting on Bitcoin. Many companies are adding it to their financial strategies. MicroStrategy, a software giant, owns more than 386,000 Bitcoin worth $5.4 billion, and Tesla has also invested heavily in the cryptocurrency. Even smaller companies like Semler Scientific have joined the trend and hold more than 1,500 Bitcoin as part of their financial reserves.
At the time of writing, BTC is trading around $95,135 and has experienced a price drop of 1.05% over the past 24 hours. During the same period, trading volume increased by 38%, indicating greater participation of traders and investors against the backdrop of price declines. Since many new companies are investing heavily in Bitcoin, it remains to be analyzed whether they will stay with Bitcoin in the long term, as short-term profit taking could cause a massive market crash. What do you think?
Credit : coinpedia.org
