Key Points
- Rumble’s share, RUM, saw a 9% increase following the founder’s plan to add Bitcoin to its corporate treasury.
- Over 90% of X users supported the proposal, but the addition of Bitcoin to Rumble’s balance sheet is not guaranteed.
Rumble, a video streaming platform and competitor to Twitch, experienced a 9% increase in its share, RUM, during U.S. market hours on Tuesday.
This surge came after the company’s founder, Chris Pavloski, proposed adding Bitcoin [BTC] to the company’s corporate treasury.
Market Sentiment and Feedback
To gauge market sentiment and feedback on the proposal, Pavloski conducted a poll on X (formerly known as Twitter).
Michael Saylor, known for pioneering the BTC corporate treasury strategy through MicroStrategy, helped to increase the reach of the poll on his X account.
The poll question was, “Should $RUM add #Bitcoin to its Balance Sheet?”
Not surprisingly, over 90% of X users voted in favor of Rumble adding BTC to its treasury.
Corporate FOMO
However, the poll results do not guarantee BTC’s inclusion in Rumble’s balance sheet.
As a public company, the decision must be approved or rejected by Rumble’s board of directors.
MicroStrategy’s share, MSTR, has significantly outperformed all S&P 500 Index stocks since adopting the BTC strategy in 2020.
This success may be driving a new wave of corporate FOMO, as companies strive to replicate MSTR’s success for their shareholders.
As of press time, RUM’s price rally had slightly cooled off after peaking at $6 on Tuesday.
It is worth noting that the recent negative Q3 earning results pushed the share’s price down nearly 25% to a yearly support at $5.
Whether the interest in BTC will aid in the price recovery and reverse the recent losses by reaching $6.5 or $7 remains to be seen.