Thumzup Media, a company backed by the Trump family, has made headlines with its latest announcement regarding a substantial investment in cryptocurrencies, marking a pivotal shift in its strategic direction. The company revealed on Friday that it has purchased $1 million worth of various digital assets, including Bitcoin, Ether, Dogecoin, XRP, and Solana, as part of a broader initiative to expand into the cryptocurrency sector.
Originally going public on Nasdaq last October with an $8.2 million offering at $5 per share, Thumzup is now taking significant steps to diversify its operations by venturing into cryptocurrency mining and treasury asset management. A letter to shareholders highlighted plans to acquire DogeHash Technologies, a mining firm that currently operates 2,500 Dogecoin mining rigs, with an additional 1,000 units expected soon. However, this acquisition is still pending approval from shareholders.
This latest move follows Thumzup’s earlier cryptocurrency endeavors; in January, the board sanctioned its first $1 million Bitcoin purchase, which was followed by a second purchase weeks later. By June, the company had raised $6.5 million at a valuation of $6 per share, gaining financial backing from strategic investors through a new alliance with Dominari Securities, a firm specializing in crypto investments. In a remarkable turn of events, Thumzup successfully concluded a more extensive $50 million stock offering in August, priced at $10 per share, also facilitated by Dominari.
The shareholder correspondence detailed that DogeHash’s existing miners are already operational, and the anticipated additional units are described as “best in class.” Although not all of the mining rigs are Antminer L9s, similar equipment from Bitmain is speculated to have a hash rate of 16 GH/s per machine, with an electricity consumption of 3,360W. Utilizing Bitmain’s calculator, projections suggest that 3,500 units could generate annual revenue ranging from $22.7 million to $103.2 million, depending on the fluctuating price of DOGE, currently standing at $0.22.
Entering the lucrative global crypto mining market, valued at approximately $10.5 billion and expected to double by 2035, Thumzup’s acquisition of DogeHash places it strategically within a high-growth sector. The company claims this deal may deliver superior returns compared to its previous advertising platform and reduce its dependency on external financing in the future. Chairman and CEO Robert Steele expressed confidence in this trajectory, suggesting that it would lead to significant value creation for shareholders. Steele anticipates further expansion of Thumzup’s mining fleet using capital raised from the recent funding efforts, consequently raising the company’s revenue through 2026 and beyond.
This expansion aligns with recent regulatory changes under former President Donald Trump, who signed an executive order aimed at reinforcing U.S. leadership in financial technology. The move resulted in a push for a national Bitcoin reserve and support for increased public firm participation in crypto and blockchain innovation. Since then, over 100 public companies have adopted crypto-related treasury strategies, paving the way for at least 40 public mining firms, with leading companies such as MARA Holdings, CleanSpark, and Riot Platforms reaching valuations of $5.6 billion, $4.5 billion, and $3 billion, respectively.
Thumzup’s recent partnerships also demonstrate its commitment to integrating crypto into its business model. This past May, the firm teamed up with Coinbase Prime to secure access to institutional trading and Bitcoin-backed credit lines. Additionally, the establishment of a crypto advisory board, beginning with the appointment of Alex Hoffman from DogeOS, aims to navigate and accelerate Thumzup’s cryptocurrency initiatives. Hoffman, who drives ecosystem development at DogeOS, expressed a focus on enhancing utility for Dogecoin holders through various yield-generating strategies.
With this ambitious plan, Thumzup positions itself to tap into the burgeoning crypto market while aiming to deliver enhanced value to its shareholders through innovative asset management strategies and mining operations.
