RUM Group, parent company of video platform Rumble, reduced its bitcoin holdings by approximately 68% during the third quarter, selling roughly 198 bitcoin as its AI cloud business achieved profitability for the first time.
The Nasdaq-listed company held 94.68 bitcoin valued at $7.9 million as of September 30, down from 293.14 bitcoin worth approximately $17.2 million at the end of June. The company's cash-flow statement shows net digital asset sales of about $15.3 million during the first nine months of 2026.
Rumble did not disclose the sale price or provide an explanation for the reduction in its earnings release.
AI Cloud Business Drives Results
The bitcoin drawdown coincided with strong performance from Quake AI, the cloud and AI infrastructure unit built around Northern Data, a German GPU operator acquired in June. Revenue climbed 290% year-over-year to a record $96.6 million, with Quake AI contributing $68.2 million, representing more than 70% of total revenue in its first full quarter.
The unit operates approximately 22,000 Nvidia GPUs at roughly 85% utilization. Adjusted EBITDA reached $4.4 million, marking the company's first positive result on that basis. On a GAAP basis, RUM Group reported a net loss of $89.9 million, primarily due to $85.2 million in amortization and depreciation.
CEO Chris Pavlovski stated on the earnings call that "Quake AI is now the engine of our business. We have real assets running real AI workloads for real customers and generating real cash."
Video Platform Faces Headwinds
Rumble's video segment generated $28.4 million in revenue, up 15% year-over-year, but posted a $12.1 million adjusted EBITDA loss, wider than the prior year.
Cash Position Declining
RUM Group ended September with $134.4 million in cash and cash equivalents, down from $203.3 million at the end of June and $237.9 million at the end of 2025. The company raised its stake in Northern Data to approximately 98% during the quarter and expects to own the entire company by early 2027.
For the fourth quarter, RUM Group guided revenue to between $88 million and $94 million. The company also warned that approximately 250 megawatts of unmonetized capacity targeted for 2027 may extend beyond that year due to market conditions.
Part of Broader Trend
Rumble's bitcoin sales follow similar moves by other companies. Hyperscale Data sold its remaining bitcoin to fund an AI data center, Keel sold its entire treasury, and Marathon Digital Holdings sold 13,597 bitcoin recently as capital has shifted toward artificial intelligence initiatives.
