Thumzup Raises $50M to Boost Bitcoin Mining and Crypto Holdings
- Thumzup secures $50 million to power U.S. Bitcoin mining and expand crypto holdings.
- Firm boosts treasury with Bitcoin, Ethereum, XRP, Dogecoin, and other holdings.
- Donald Trump Jr. buys 350,000 Thumzup shares, boosting visibility and interest.
Thumzup Media Corporation has secured $50 million in funding to expand its cryptocurrency strategy. The Los Angeles-based firm intends to launch a large-scale U.S. Bitcoin mining facility. This move aligns with its pivot toward digital assets, first initiated in January. The company will also increase its crypto treasury exposure across multiple coins.
The capital was raised via a $10-per-share public offering concluded on Tuesday. Thumzup announced that proceeds will fund advanced cryptocurrency mining infrastructure. The company is currently engaging with mining equipment providers to accelerate deployment. Thumzup’s plan reflects a broader trend of publicly listed firms integrating crypto into operations.
Strategic Expansion of Crypto Holdings
Thumzup currently holds 19.1 Bitcoin after entering the crypto market earlier this year. The firm aims to diversify its crypto holdings with six additional assets. These include Ethereum, XRP, Solana, Dogecoin, Litecoin, and USDC. Its board has approved up to $250 million in total crypto investments. This positions Thumzup among a growing cohort of companies adopting crypto as a treasury reserve.
Corporate interest has been reinforced by market optimism with regard to Bitcoin. The increasing portfolio of Thumzup indicates that the company is using the digital assets as leverage to improve its funds. The company becomes part of a long list of corporate giants redefining the management of cash by means of crypto in the U.S.
Market Response and Institutional Effect
After the announcement, Thumzup shares increased by 7.62% when trading resumed after hours on Wednesday. Its shares have surged by nearly 194.5% Year-to-date, despite the Q1 net loss of $2.2 million. This loss came alongside revenues of just $151, underscoring the company’s early-stage business model.
Notably, Donald Trump Jr. purchased 350,000 shares of Thumzup in July. The acquisition, worth $3.3 million at the time, drew regulatory attention. It also increased visibility for the firm’s crypto-centric pivot. His investment coincided with Thumzup’s growing crypto portfolio.
Thumzup’s Broader Business Model
Thumzup started in 2020 as a social media marketing platform. The new direction towards digital assets is an important change of course. Crypto is a recent central focus, whilst core operations remain ongoing.
In January, Thumzup began shifting most of its liquid reserves into Bitcoin, and since then, it has amassed over $2 million worth of BTC. The company’s latest funding round and mining ambitions signal a strong commitment to its long-term vision.
Related: Bitcoin Breaks $124K Amid Rate Cut, CPI, and Political Pressures
Crypto Adoption Among Public Companies
Thumzup’s move mirrors global trends in corporate crypto adoption. On Wednesday, Sweden’s H100 Group revealed a Bitcoin purchase of 45.8 BTC. This brings its total to 809.1 BTC, making it the 42nd largest holder among public firms. Germany’s Bitcoin Group SE leads EU firms with 3,605 BTC.
Increasing numbers of companies are investing in Bitcoin and other cryptocurrencies. Treasury changes are being caused by increasing prices, as well as institutional acceptance. Thumzup is taking a bold step towards that future through its plans.
The post Thumzup Raises $50M to Boost Bitcoin Mining and Crypto Holdings appeared first on Cryptotale.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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