Rumble(NASDAQ: RUM) stock jumped in Wednesday's trading. The company's share price closed out the daily session up 6.2% and had been up as much as 14.1% earlier in the day's trading.
Rumble stock gained ground today after founder and CEO Chris Pavlovski made comments suggesting that the company could make investments in Bitcoin. The market-leading cryptocurrency has been on an incredible bull rally, and some Rumble investors are betting that an investment in the crypto coin could help power gains for the company.
Is Rumble about to buy Bitcoin?
Rumble's CEO, Chris Pavlovski, recently posted a message on X that appeared to hint at the company buying Bitcoin. Pavlovski posted a poll asking users whether his company should add Bitcoin to its balance sheet. While the CEO's inquiry may have been somewhat of a leading question, it did generate a large number of respondents who voted in favor of a move by the company to buy Bitcoin. Nothing has been confirmed, but there seems to be a good chance that Rumble will add Bitcoin to its balance sheet in the near future.
What's next for Rumble?
It's possible that announcements of plans to buy Bitcoin would power near-term gains for Rumble stock. The cryptocurrency has been enjoying strong bullish momentum, and well-timed investments could have beneficial impacts on Rumble's bottom line and overall valuation. On the other hand, investors should keep in mind that the company's core business revolves around its streaming platform -- and not potential crypto investments.
Rumble's last quarterly report arrived with sales that came in below Wall Street's expectations and engagement metrics that looked somewhat concerning in light of anticipated tailwinds stemming from the 2024 election season. The platform has not been posting user growth and monetization levels that bode well for long-term viability. While it's possible that successful crypto investments could strengthen the overall company and provide new growth avenues, hints at potential Bitcoin purchases don't necessarily mean that Rumble's long-term performance outlook has meaningfully improved.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.
