RUM has made a huge announcement this week that they will purchase Bitcoin using strategic reserves. This includes up to $20 million worth of Bitcoin, which is following the same model implemented by Michael Saylor. I think MSTR and companies like RUM could really help to create a massive bubble where stocks and crypto keep rallying. This should be great for capitalizing on opportunities, but also concerning because it’s not sustainable. MSTR is extremely overvalued relative to the amount of Bitcoin owned, but continues to rise in value due to their Ponzi scheme structure of borrowing money, purchasing BTC, price of BTC increases and the price of their stock increases, pay back the loan and repeat. I think RUM is trying to adopt a similar strategy here, which could lead to some hype. I personally would look for entries around $4-5 price levels. I think RUM is trading near resistance around $7.50, and I have $12.50 as a key target on the way up. I think there will be a ton of buyers ready around $4.50 so I’m willing to bid a little higher around $5.
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