🐕 $50 Million Power Play: Thumzup Doubles Down on Dogecoin Mining

The Trump family is not unrelated to this pivot's capital stack. In July, Thumzup shelf registration listed Donald J. Trump Jr. as a selling shareholder for 350,000 shares, formalizing his ownership stake. Dominari Securities raised funds for Thumzup's crypto development. Donald Trump Jr. and Eric Trump joined Dominari Holdings' advisory board earlier this year, according to filings and contemporaneous reporting.

The DogeHash sale involves a change-of-control, according to regulatory papers. Thumzup will be renamed Dogehash Technologies Holdings, Inc. under an August 19 Agreement and Plan of Merger and will issue 30.7 million restricted common shares to DogeHash shareholders at closing, subject to Nasdaq shareholder approval (including the 19.99% issuance threshold), Nasdaq's approval, a fairness opinion, and standard closing conditions. “The combined company aims to become the world’s leading Dogecoin mining platform,” the 8-K adds. Media reports have claimed the post-merger ticker would be “XDOG,” although the SEC filing has not confirmed this.

Thumzup's letter is positive on scrypt economics, but its revenue math is illuminating. Using Bitmain's L9-class miners (16 GH/s, ~3,360W), the firm estimates that 3,500 units could generate $22.7 million annually at $0.22 per DOGE, and ~$103.2 million at $1 DOGE. “Actual results may vary,” the letter warns. It also highlights the $50 million offering, which left the business with “more than $50 million in cash and [a] relatively small burn rate” to grow the fleet.

The shareholder letter also credits a more crypto-forward US approach and outlines a treasury plan that started with $1 million in Bitcoin purchases in January and a second $1 million allocation later that month. These themes are touted as the company's tailwinds, but investors are bound by the capital raising, the DogeHash merger structure and terms, and Thumzup's operational footprint around Dogecoin and Litecoin mining.

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