Thumzup to Increase Into Crypto Mining, Blockchain Investments After $50M Increase

Thumzup Media Company, a social media advertising agency that pivoted into crypto investments earlier this yr, is ramping up its digital asset technique following a $50 million capital increase.

Key Takeaways:

• Thumzup raised $50M to increase into large-scale crypto mining and focused blockchain investments.
• The agency holds 19.1 BTC and plans to diversify into six extra cryptocurrencies, with board approval for as much as $250M in digital property.
• Shares have surged practically 194.5% YTD, pushed by its aggressive pivot towards crypto regardless of posting a Q1 loss.

The corporate introduced Wednesday that it’ll increase into “large-scale cryptocurrency mining and focused blockchain investments,” utilizing proceeds from a $10-per-share providing accomplished Tuesday.

A part of the funding will go towards “state-of-the-art cryptocurrency mining infrastructure,” with Thumzup already in talks with mining know-how suppliers to hurry up deployment.

Thumzup Eyes $250M Crypto Portfolio, Expands into Mining

Thumzup entered the crypto house in January, initially buying Bitcoin. It now holds 19.1 BTC and plans to diversify into Dogecoin, Litecoin, Solana, XRP, Ether, and USDC, with its board authorizing as much as $250 million in complete crypto holdings.

The corporate’s profile within the sector drew extra consideration in early July when Donald Trump Jr., son of U.S. President Donald Trump, bought 350,000 shares, price practically $3.3 million on the time, in keeping with regulatory filings.

The timing of Thumzup’s mining push coincides with Bitcoin hitting a file excessive of $124,128 early Thursday, earlier than easing to $123,683, up 3.6% in 24 hours, per CoinGecko knowledge.

Shares of Thumzup (TZUP) rose 7.62% in after-hours buying and selling Wednesday to $10.87, reversing a 1.1% decline throughout the common session.

The inventory is up practically 194.5% year-to-date, with its newest peak of $15.46 recorded on Aug. 8. Nonetheless, it slid practically 33% earlier this week after saying plans for a public providing of non-voting convertible most well-liked inventory, later revised.

Final month, Thumzup obtained board approval to carry as much as $250 million in cryptocurrencies, together with Bitcoin and different main digital property.

Based in 2020 and based mostly in Los Angeles, Thumzup operates a platform that rewards customers with money for selling branded content material on social media.

Thumzup affords an app that pays customers for product suggestions on Instagram.

It recorded a $2.2 million loss on simply $151 in income in Q1. Nonetheless, its inventory soared virtually 75% over the prior 4 periods earlier than tumbling 17% by mid‑Wednesday.

In January, Thumzup made a notable pivot by saying it might maintain most of its liquid property in Bitcoin.

Since then, it has collected over $2 million price of BTC. Now, the corporate plans to diversify additional by including six extra cash, utilizing funds raised in its newest spherical.

European Bitcoin Holdings Develop

Thumzup’s growth displays a broader pattern of public corporations boosting their crypto treasuries.

Stockholm-based well being know-how agency H100 Group revealed Wednesday ithad bought a further 45.8 BTC, bringing its complete to 809.1 BTC.

H100 mentioned it paid a mean of below 1.14 million Swedish krona ($119,090) per Bitcoin, for a complete outlay of 52.18 million krona ($5.47 million).

The acquisition ranks H100 because the forty second largest public firm Bitcoin holder globally and the fourth largest within the EU, trailing Germany’s Bitcoin Group SE, which holds 3,605 BTC, in keeping with BitcoinTreasuries.web.

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