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Thumzup Media Corporation
(NASDAQ:
TZUP
) revealed plans on Thursday to acquire
DogeHash Technologies
, a deal that would put 3,500
Dogecoin
(CRYPTO:
DOGE
)
mining rigs under its control.
What’s Happening:
The proposed acquisition, detailed in a letter to shareholders, signals a major shift for the company, moving from advertising technology into the realm of large-scale cryptocurrency mining.
The Los Angeles-based Thumzup indicated that DogeHash currently manages 2,500 operational Dogecoin mining devices, with an anticipated delivery of an additional 1,000 units before the end of the year.
The acquisition is contingent upon approval from Thumzup’s shareholders.
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Thumzup projects that operating a total of 3,500 mining rigs could generate between $22.7 million and $51.6 million in yearly revenue, depending on the fluctuating market price of Dogecoin.
The company referenced publicly available data from
Bitmain
‘s (AMEX:
BMNR
) Antminer calculators to demonstrate the potential revenue.
The Significance:
This strategic maneuver follows Thumzup’s successful $50 million capital raise through an all-stock offering priced at $10 per share in August, strengthening its financial position for expansion initiatives.
The company also revealed previous investments in
Bitcoin
(CRYPTO:
BTC
), and stated that its board of directors has approved investments in various digital currencies, including Dogecoin,
Litecoin
(CRYPTO:
LTC
),
Solana
(CRYPTO:
SOL
),
Ripple
(CRYPTO:
XRP
),
Ether
(CRYPTO:
ETH
), and
USD Coin
(CRYPTO:
USDC
).
The DogeHash transaction positions Thumzup among a growing group of publicly traded cryptocurrency mining firms.
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?
Industry research suggests that the global cryptocurrency mining market will reach a value of $10.5 billion by 2025 and is expected to more than double by 2035.
Dogecoin, boasting a market capitalization exceeding $36 billion as of August, remains a prominent cryptocurrency, held in more than 5 million digital wallets worldwide.
Thumzup’s venture into mining is aligned with recent policy developments in the United States, including executive orders during the administration of President
Donald Trump
designed to bolster the nation’s standing in digital finance and establish a strategic Bitcoin reserve.
While expanding into crypto mining, Thumzup will continue to operate its original AdTech platform, which it reported surpassed 34,000 paid social media posts by August.
Image: Shutterstock
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