Rumble parent cuts bitcoin holdings by about two-thirds as AI drives adjusted profit

RUM Group, the Nasdaq-listed parent of video platform Rumble, disclosed Wednesday that the company reduced bitcoin holdings by about two-thirds during the third quarter. RUM Group held 94.68 bitcoin worth $7.9 million on September 30. Second-quarter results put the holdings at 293.14 bitcoin, worth about $17.2 million, at June's end. The change implies sales of roughly 198 bitcoin, equivalent to about 68% of the holdings. Rumble provided neither a reason for the sales nor the price received in the company's release.

The cash-flow statement recorded about $15.3 million in net digital asset sales during the first nine months of 2026. Digital asset purchases consumed $19.1 million during the corresponding period a year earlier. The balance sheet recorded $11.1 million in digital assets, compared with $18.5 million at the end of 2025. The release provided no breakdown of that balance-sheet category.

Quake AI, Rumble's cloud and AI infrastructure business, dominated the quarter in which the bitcoin holdings declined. Rumble developed Quake AI around Northern Data, a GPU operator based in Germany that Rumble acquired in June. Third-quarter revenue increased 290% from a year earlier to a record $96.6 million, exceeding the upper end of company guidance. Quake AI generated $68.2 million in the unit's first full quarter, accounting for more than 70% of total revenue. Quake AI operates about 22,000 Nvidia GPUs. The company put GPU utilization at about 85%.

The newly acquired AI cloud business helped RUM Group generate positive adjusted EBITDA for the first time, at $4.4 million. However, RUM Group recorded a GAAP loss of $89.9 million, with amortization and depreciation of $85.2 million weighing on results. Executives said during the earnings call that about $39 million of those charges resulted from purchase-accounting increases in Northern Data's asset values. CEO Chris Pavlovski described Quake AI as the business's principal driver. Pavlovski said Quake AI's assets serve customers running AI workloads and generate cash.

Executives said during the call that Rumble's video segment generated $28.4 million in revenue, an increase of 15% from a year earlier. Executives said the video segment's adjusted EBITDA loss reached $12.1 million, exceeding the loss a year earlier. RUM Group held $134.4 million in cash and cash equivalents at September's end, compared with $203.3 million at June's end. Cash and cash equivalents had totaled $237.9 million at the end of 2025. RUM Group increased the company's Northern Data stake to about 98% during the quarter. RUM Group expects to acquire full ownership in early 2027.

RUM Group warned that market conditions may delay some of the roughly 250 megawatts of unmonetized capacity targeted for 2027 until after that year. RUM Group forecast fourth-quarter revenue between $88 million and $94 million.

Rumble launched a crypto wallet with Tether in January that allows creators to receive bitcoin payments. Rumble's sales join a series of corporate bitcoin reductions or exits as prices decline and capital moves toward AI. Hyperscale Data sold the company's remaining bitcoin to finance an AI data center. Keel sold the company's entire bitcoin treasury for $192 million. MARA sold 13,597 bitcoin this month.

Bitcoin traded around $72,800 early Thursday, below the roughly $83,400 per bitcoin implied by Rumble's September 30 valuation. Rumble's remaining 94.68 bitcoin would be worth about $6.9 million at Thursday's price. Rumble's next quarterly results should clarify whether the company retains a small bitcoin holding or sells the remainder.