Thumzup Media Corporation’s Acquisition Plans
Thumzup Media Corporation, linked to the Trump family, is planning to acquire 3,500 Dogecoin mining rigs and anticipates generating up to $103 million in annual revenue, contingent on Dogecoin reaching a dollar.
In a shareholder letter released on Thursday, Thumzup disclosed that it has finalized agreements, pending shareholder consent, to acquire a Dogecoin (DOGE) mining operation that includes an initial 2,500 rigs, with an additional 1,000 already ordered.
Transition to Cryptocurrency Mining
In August, the company announced its shift from an adtech platform to cryptocurrency mining through the impending purchase of DogeHash Technologies, which manages the Dogecoin miners.
The newly combined entity will be renamed Dogehash Technologies Holdings and will trade under the ticker XDOG. The company reported completing a $50 million share offering in August.
Revenue Projections
The corporation made ambitious forecasts regarding the use of 3,500 Bitmain Antminers to mine Dogecoin. Based on current prices, it anticipates an annual revenue of $22.7 million; if Dogecoin reaches $1, the potential annual revenue could soar to $103 million, according to their statement.
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Currently, DOGE is trading lower at $0.214, which is over 70% below its all-time high from 2021.
Market Insights
Thumzup pointed to BIT Mining, a publicly traded miner, which reported in December that its Dogecoin mining operations were nearly three times more profitable than its Bitcoin (BTC) mining alone.
Dogecoin, boasting a market capitalization of more than $32 billion and a daily trading volume of $1.3 billion, is noted as “one of the most widely held cryptocurrencies.”
Future Aspirations
Thumzup aims to establish itself as one of the few publicly traded, utility-scale Dogecoin miners, noting the $10.5 billion crypto mining market is projected to more than double by 2035.
This week, KuCoin announced its intention to capture 10% of the Dogecoin mining capacity as more firms shift towards alternative crypto assets.
Diverse Crypto Holdings
Besides Bitcoin, the Thumzup board has authorized the holding of Dogecoin (DOGE), Litecoin (LTC), Solana (SOL), XRP (XRP), Ether (ETH), and USDC (USDC).
Thumzup currently possesses 19.1 BTC, valued at around $2.1 million, as reported by BitcoinTreasuries.NET.
Investment by Donald Trump Jr.
According to a July filing, Donald Trump Jr., son of US President Donald Trump, purchased 350,000 shares of the company. The Trump family connection extends further through Dominari Securities, the investment bank facilitating Thumzup’s fundraising efforts.
The company’s stock (TZUP) rose by 5.3% on the day, closing at $5.57, based on data from Google Finance. While shares have significantly decreased from their August peak of over $15, they have gained 62% since the start of this year.
