Thumzup Media, the Nasdaq-listed firm backed by Donald Trump Jr., is making a serious wager on retail favorite dogecoin with plans to deploy 3,500 Dogecoin mining rigs by year-end.
The enlargement is predicted to return by way of a pending acquisition of Dogehash, a miner centered on the Scrypt algorithm that secures each Dogecoin and Litecoin.
Scrypt is particularly designed to make it expensive to carry out large-scale customized {hardware} assaults by requiring massive quantities of reminiscence.
In line with its newest shareholder letter, Thumzup intends to purchase Dogehash’s current 2,500-rig fleet and add one other 1,000 rigs earlier than December, contingent on shareholder approval of the all-stock deal.
“Cryptocurrency mining presents what might be one of many best alternatives for worth creation within the business,” the corporate stated, projecting “materials” high-margin income from the combination.
Income estimates vary from $22.7 million at present DOGE costs to greater than $100 million if the token reaches $1. Dogecoin was buying and selling close to 22 cents on Friday, having remained little modified over the previous 24 hours.
Thumzup’s pivot into crypto comes simply months after it seeded a $1 million bitcoin place for its treasury in January. The agency has since expanded its mandate to incorporate Dogecoin, Litecoin, Solana, XRP, ether and USDC, with board approval granted in latest weeks.
The transfer displays a broader shift amongst small-cap companies seeking to mix crypto publicity with conventional operations. Whereas MicroStrategy has dominated headlines with its bitcoin-heavy stability sheet, Thumzup’s technique leans towards diversification and direct mining income on comparatively smaller tokens.
Dogecoin mining has traditionally been much less worthwhile than bitcoin because of decrease token worth and Scrypt’s dynamics, however rising memecoin adoption has sparked new curiosity. Pairing Litecoin and Dogecoin mining additionally permits operators to hedge output throughout two actively traded belongings.
If the rigs go stay as projected, Thumzup will grow to be one of many largest public Dogecoin miners, positioning itself squarely inside a market phase usually dismissed as speculative however more and more embraced by retail flows.
