Donald Trump Jr. has been named a major shareholder in Thumzup, a Los Angeles-based social media company that recently raised US$50 million to expand into cryptocurrency mining and token purchases.

A US Securities and Exchange Commission filing shows Trump Jr. held about 350,000 shares in Thumzup, with his shares potentially included in a planned secondary offering.

Thumzup, which operates an app paying users for social media posts, closed a US$50 million common stock sale this week, expected to net US$46.5 million after fees.

The company is pursuing a digital asset treasury strategy, using raised capital to buy cryptocurrencies such as Dogecoin, ether, Litecoin, Solana, and XRP.

A July 9 regulatory filing lists Trump Jr. as one of 11 shareholders offering up to 3.3 million TZUP shares, alongside venture firms and other investors.

Thumzup also plans to enter cryptocurrency mining and is in talks with mining technology providers.

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🔗 Source: The Block

🧠 Food for thought

1️⃣ Public companies are using equity markets to fund aggressive crypto accumulation strategies

Thumzup’s approach represents a growing trend where traditional public companies raise capital specifically to build cryptocurrency treasuries.

The company is authorized to allocate up to 90% of its liquid assets to cryptocurrencies, positioning it among the more aggressive players in the public market 1. This $50 million capital raise at $10 per share demonstrates how companies are leveraging public equity markets to fund speculative digital asset strategies rather than traditional business expansion.

This strategy allows retail investors to gain crypto exposure through regulated public companies, but it also means these firms become highly dependent on cryptocurrency price movements for their valuations.

The model essentially transforms these companies into publicly-traded crypto investment vehicles, which can create significant volatility for shareholders who may have originally invested for different business fundamentals.

2️⃣ Dual-revenue crypto strategies face execution challenges despite capital advantages

Thumzup’s plan to combine both crypto mining operations and treasury management represents a complex operational pivot that many companies are attempting with mixed results.

The company is shifting from passive asset holding to active production through mining while also maintaining diversified token holdings 2. However, this transition comes with significant financial strain—Thumzup reported a $5.82 million loss year-to-date while undergoing this strategic transformation 3.

The dual approach requires expertise in both treasury management and mining operations, two distinctly different skill sets that few companies possess.

Mining operations face intense competition from established players with operational advantages, raising questions about whether newcomers can achieve profitable mining operations 3. Companies pursuing this strategy must simultaneously navigate crypto market volatility, mining equipment procurement, energy costs, and regulatory uncertainty across multiple business lines.

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