Cryptocurrency company Thumzup invests $2 million in Dogecoin, expands with DogeHash mining acquisition
Thumzup Media, a company that recently raised $50 million through a common stock offering in August, has announced a significant shift in its business strategy. The company is making its first direct treasury buy with the purchase of Dogecoin, marking a fresh bet on crypto exposure.
Thumzup Media has agreed to acquire DogeHash Technologies, a Dogecoin mining operation. This acquisition signals Thumzup's bid to create recurring revenue from Dogecoin mining and put Dogecoin exposure at the forefront of its treasury and operations.
In the deal, Thumzup Media purchased 7.5 million Dogecoin tokens for approximately $2 million, with an average price per Dogecoin token of $0.2665. The funds raised in August were intended for buying crypto and expanding mining capacity.
DogeHash Technologies currently operates 2,500 Scrypt rigs and has 1,000 more rigs on order. Following the closing of the deal, Thumzup plans to rename the company Dogehash Technologies Holdings, Inc. and seek a new Nasdaq ticker "XDOG".
The acquisition also brings on board two industry experts. Jordan Jefferson, CEO of DogeOS and co-founder of MyDoge wallet, has joined Thumzup's advisory board. Alex Hoffman, Head of Ecosystem at DogeOS, will also be part of Thumzup's advisory board. Both Jefferson and Hoffman will guide Thumzup on DOGE-focused infrastructure and scaling efforts.
Thumzup's balance sheet will rise or fall with the Dogecoin price due to holding millions of DOGE tokens. The company's Dogecoin purchase is part of a wider digital asset plan, indicating a push towards holding and producing Dogecoin.
The acquisition of DogeHash Technologies is not just a step into the world of crypto for Thumzup Media, but also a move towards creating a recurring revenue stream. With the expertise of Jefferson and Hoffman on board, Thumzup is poised to make its mark in the Dogecoin mining industry.
In addition to the acquisition, Thumzup's Dogecoin purchase will result in over 30 million Thumzup shares being issued to DogeHash shareholders. This move is expected to further strengthen Thumzup's position in the crypto market.
As Thumzup Media moves forward with its new focus on Dogecoin, it is clear that the company is committed to making a significant impact in the crypto space. With the acquisition of DogeHash Technologies and its first direct treasury buy of Dogecoin, Thumzup is making a bold statement about its future in the world of digital assets.
