Thumzup Media Launches $10M Share Buyback, Builds Bitcoin and Dogecoin Treasury
Thumzup Media (Nasdaq: TZUP), a digital promoting firm with a rising crypto footprint, has unveiled a brand new $10 million share buyback program, extending its capital return technique via December 31, 2026.
Key Takeaways:
- Thumzup Media launched a $10 million share buyback after finishing a $1 million repurchase plan.
- The firm holds over 19 BTC and 7.5 million DOGE, with approval to construct a $250M crypto treasury.
- A possible Dogecoin mining acquisition and Donald Trump Jr.’s stake add momentum to its Web3 shift.
The announcement comes on the heels of the corporate finishing a $1 million repurchase plan, which noticed 212,432 shares purchased again at a mean worth of $4.71.
“Our resolution to implement a $10 million share repurchase program displays confidence in Thumzup’s long-term technique and our dedication to delivering worth to shareholders,” stated CEO Robert Steele.
TZUP shares climbed 5.7% to $4.81 following the information, giving the corporate a market cap of roughly $78 million.
Alongside its inventory buyback, Thumzup continues to construct a crypto treasury. The firm now holds 19.106 Bitcoins and round 7.5 million Dogecoins, additional signaling its pivot towards blockchain-driven monetary administration.
Earlier this 12 months, Thumzup’s board approved a framework allowing up to $250 million in crypto holdings, with belongings doubtlessly together with Bitcoin, Dogecoin, Litecoin, Solana, XRP, Ethereum, and USD Coin.
Thumzup additionally confirmed it’s awaiting shareholder approval to accumulate DogeHash Technologies, a Dogecoin mining agency with 2,500 mining rigs operational and one other 1,000 items on the way in which.
The acquisition, if finalized, would broaden the corporate’s publicity to crypto mining and strengthen its digital asset infrastructure.
Notably, Donald Trump Jr. holds a 350,000-share stake within the firm, revealed in summer season filings, including a layer of public consideration to Thumzup’s crypto-linked technique.
With the share buyback and rising digital asset reserves, the corporate seems to be positioning itself on the intersection of promoting and Web3 finance.
Crypto Treasury Craze Unravels as Firms Turn to Debt-Fueled Buybacks
The crypto treasury technique that gained traction amongst small-cap corporations in 2024 is starting to unravel, with a number of firms now launching debt-funded share buybacks to counter plunging inventory costs.
At least seven corporations, together with these in gaming, biotech, and EV sectors, at the moment are buying and selling beneath the worth of their crypto holdings, elevating pink flags amongst traders and analysts.
Critics say the tactic indicators desperation and a departure from the unique concept that crypto appreciation alone would drive shareholder worth.
Notable instances embody ETHZilla (previously 180 Life Sciences), which noticed its inventory drop 76% regardless of accumulating ether and rebranding.
The firm lately secured $80 million in debt to finance a $250 million buyback. Meanwhile, Empery Digital (previously Volcon) holds $476 million in BTC however has a market cap of simply $378 million—prompting it to broaden its debt facility for comparable repurchases. Analysts argue these strikes are extra about propping up inventory costs than investing in digital belongings.
Across the board, firms like SharpLink Gaming, Ton Strategy, and CEA Industries are seeing their crypto treasury methods backfire.
A latest report from K33 Research reveals that 25% of public firms holding Bitcoin now commerce at market values beneath the price of their BTC holdings, highlighting a pointy drop in investor confidence.
The rising low cost, generally known as the NAV hole, is limiting corporations’ means to boost capital, significantly hurting smaller gamers like NAKA, which has seen a 96% collapse in its market worth.
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