Trump-connected Thumzup made a big bet on Dogecoin mining revenue
Thumzup, a media corporation linked to the Trump family, plans to acquire 3,500 Dogecoin miners and expects to generate up to $103 million in annual revenue, depending on whether Dogecoin hits one dollar.
In a shareholder letter released on Thursday, Tumzup Media Corporation announced that it has entered into agreements to acquire an initial 2,500 rigs and an order for 1,000 more, pending shareholder approval, to mine Dogecoin (DOGE).
In August, the company said it was moving from its adtech platform to cryptocurrency mining through the acquisition of DogeHash technology, which powers Dogecoin miners.
The combined company will be called Dogeghash Technologies Holdings and will trade under the symbol XDOG. The company reported that it completed a $50 million stock offering in August.
The organization made bold predictions about converting 3,500 Bitmain Antminers to Dogecoin. At current prices, the company expects $22.7 million in annual revenue, and if Dogecoin reaches $1, the company could earn up to $103 million in annual revenue, he said.
DOGE is currently trading at $0.214 on the day, down more than 70% from its 2021 all-time high.
Dogecoin mining is more profitable than Bitcoin mining.
Thumzup cited publicly traded miner BT Mining, which reported in December that its Dogecoin mining operation was nearly three times more profitable than Bitcoin (BTC) mining alone.
Dogecoin, with a market capitalization of more than $32 billion and a daily trading volume of $1.3 billion, is “one of the most widely held cryptocurrencies,” he said.
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Thumzup is setting itself up as one of the few publicly traded utility-scale Dogecoin miners, citing the $10.5 billion crypto mining market that is expected to more than double by 2035.
This week, KuCoin announced plans to capture 10% of Dogecoin's mining capacity as more companies switch to alternative crypto assets.
Crypto Treasury Wishes
In addition to Bitcoin, the Thumzup board allows you to hold Dogecoin (DOGE), Litecoin (LTC), Solana (SOL), XRP (XRP), Ether (ETH) and USDC (USDC).
Thumzup holds 19.1 BTC worth about $2.1 million according to BitcoinTreasures.NET.
US President Donald Trump's son, Donald Trump Jr., bought 350,000 shares of the company in a filing in July. Trump family ties also run deep through Dominion Securities, the investment bank that facilitated Thumzup's fundraising.
Shares of the company (TZUP) traded up 5.3% on the day, ending the session at $5.57, Google Finance reports. Its shares have fallen from a high of more than $15 in August, but are up 62 percent since the start of this year.
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