A media company with ties to Donald Trump Jr., Thumzup Media Corporation, is making a significant pivot into cryptocurrency mining. The company plans to acquire 3,500 Dogecoin mining rigs, projecting potential annual revenues of up to $103 million if Dogecoin reaches the $1 mark. This move signals a growing interest in alternative digital assets within publicly traded companies.
Key Takeaways
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Thumzup Media Corporation is set to acquire 3,500 Dogecoin mining rigs.
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The company anticipates generating up to $103 million in annual revenue if Dogecoin hits $1.
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Thumzup is rebranding as Dogehash Technologies Holdings and will trade under the ticker XDOG.
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The company previously completed a $50 million share offering.
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Dogecoin mining is cited as being nearly three times more profitable than Bitcoin mining by a publicly traded peer.
Strategic Pivot to Crypto Mining
Thumzup announced its strategic shift from an adtech platform to cryptocurrency mining in August, through the pending acquisition of DogeHash Technologies, the operator of the Dogecoin mining facilities. The combined entity will be renamed Dogehash Technologies Holdings and will be listed under the ticker XDOG. This transition is supported by a recently completed $50 million share offering.
The company's ambitious projections are based on utilizing 3,500 Bitmain Antminers. At current Dogecoin prices, Thumzup estimates an annual revenue of $22.7 million. However, this figure could skyrocket to $103 million if the price of Dogecoin reaches $1. Currently, Dogecoin is trading around $0.214, significantly down from its 2021 peak.
Dogecoin Mining's Profitability and Market Position
Thumzup points to the profitability of Dogecoin mining, citing publicly traded miner BIT Mining, which reported in December that its Dogecoin mining operations were almost three times more profitable than its Bitcoin mining. With a market capitalization exceeding $32 billion and a daily trading volume of $1.3 billion, Dogecoin is recognized as one of the most widely held cryptocurrencies.
Thumzup aims to establish itself as one of the few publicly traded, utility-scale Dogecoin miners in a crypto mining market projected to more than double by 2035, reaching $10.5 billion. This trend is further evidenced by KuCoin's recent announcement to capture 10% of Dogecoin mining capacity, reflecting a broader industry shift towards alternative crypto assets.
Corporate Structure and Investments
Beyond Bitcoin, the Thumzup board has also authorized the holding of other cryptocurrencies, including Dogecoin (DOGE), Litecoin (LTC), Solana (SOL), XRP (XRP), Ether (ETH), and USDC (USDC). The company currently holds approximately $2.1 million worth of Bitcoin.
Donald Trump Jr., son of former U.S. President Donald Trump, holds a significant stake in the company, having purchased 350,000 shares in July. The Trump family's involvement is further underscored by Dominari Securities, the investment bank that has facilitated Thumzup's fundraising efforts.
Thumzup's stock (TZUP) saw a 5.3% increase on the day, closing at $5.57. While the stock has experienced a decline from its August high of over $15, it has still shown a 62% gain since the beginning of the year.
Sources
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Trump-Linked Thumzup Bets Big On Dogecoin Mining Revenue, Cointelegraph.
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Cryptocurrency Dogecoin News Today | Cointelegraph, Cointelegraph.
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