Thumzup Media Corporation Doubles Bitcoin Investment to $2 Million with Additional Purchase

Rhea-AI Summary

Thumzup Media (Nasdaq: TZUP) has announced doubling its Bitcoin investment to 19.106 BTC, strengthening its digital asset strategy. The company is authorized to hold up to 90% of its surplus cash in Bitcoin, following its treasury asset strategy initially outlined on November 15, 2024.

This increased investment positions Thumzup to potentially gain rank in The HODL Top 70, a ranking of publicly traded companies owning the most Bitcoin. The move comes as legislation to establish Strategic Bitcoin Reserves has been introduced in six states, highlighting growing institutional acceptance of cryptocurrency.

The company views Bitcoin as both a strategic treasury management asset and a fundamental component of digital finance's future, aiming to enhance financial stability and drive long-term shareholder value.

Positive

• Doubled Bitcoin holdings to 19.106 BTC
• Authorization to hold up to 90% of surplus cash in Bitcoin
• Potential inclusion in HODL Top 70 ranking

Negative

• High exposure to volatile cryptocurrency assets (90% of surplus cash)

Insights

Financial Analyst

Thumzup's decision to double down on Bitcoin represents a bold but potentially risky treasury management strategy. With 19.106 BTC holdings against a market cap of $34.2 million, the company has committed approximately 5.8% of its market value to Bitcoin - a relatively aggressive position compared to larger public companies.

This move is particularly noteworthy given the emerging regulatory landscape, with six states now considering legislation for strategic Bitcoin reserves. This institutional adoption trend could provide additional legitimacy to TZUP's strategy. However, investors should carefully consider the risk implications:

• Volatility exposure: Bitcoin's price fluctuations could significantly impact quarterly earnings reports
• Treasury management: The authorization to hold up to 90% of surplus cash in Bitcoin suggests potential liquidity risks
• Regulatory considerations: While state-level adoption is increasing, federal regulatory uncertainty remains a key risk factor

The strategy positions TZUP as an early adopter in the small-cap space, potentially offering shareholders indirect Bitcoin exposure through equity ownership. However, this level of cryptocurrency concentration in treasury assets introduces substantial volatility risk that could overshadow the company's core business performance in financial reporting periods.

Digital Assets Specialist

Thumzup's expanded Bitcoin position demonstrates a strategic pivot toward digital asset treasury management that could have far-reaching implications. The company's potential inclusion in the HODL Top 70 ranking would place it alongside significantly larger corporations, potentially increasing its visibility among crypto-focused investors.

The 90% surplus cash allocation authorization to Bitcoin is particularly aggressive, indicating:

• Strong conviction in Bitcoin's long-term value proposition
• Potential positioning for institutional crypto adoption acceleration
• A hedge against traditional financial system risks

This strategy aligns with the growing trend of state-level Bitcoin adoption, as evidenced by legislative initiatives in six states. However, the concentration risk is substantial for a company of this size. The move could serve as a case study for other small-cap companies considering similar treasury diversification strategies, though the high allocation ceiling may prove too aggressive for most corporate treasury policies.

Thumzup is Authorized to Hold up to 90% of Surplus Cash in Bitcoin

Company Expects to Gain Rank in The HODL Top 70, a Ranking of Publicly Traded Companies Owning the Most Bitcoin_[1]

Legislation to Establish Strategic Bitcoin Reserves has been Introduced in Six States _[2]

LOS ANGELES, Jan. 30, 2025 /PRNewswire/ -- Thumzup Media Corporation ("Thumzup" or the "Company") (Nasdaq: TZUP), an emerging leader in social media branding and programmatic marketing solutions, announced today that it has further bolstered its Bitcoin ("BTC") holdings to 19.106 BTC.

The Company's decision to increase its exposure to Bitcoin demonstrates its commitment to diversifying treasury assets and capitalizing on the potential of digital assets.

Thumzup's ongoing strategy to integrate Bitcoin into its financial operations aligns with its broader treasury asset strategy, initially outlined on November 15, 2024. By securing a significant portion of its liquid assets in Bitcoin, Thumzup aims to enhance financial stability and drive shareholder value over the long term.

"We see Bitcoin not only as a strategic asset for treasury management but also as a fundamental component of our vision for the future of digital finance," commented Robert Steele, Chief Executive Officer of Thumzup Media Corporation. "This investment reflects our confidence in Bitcoin's role as a store of value and its potential to reshape global financial markets."

The Thumzup app is available for download on the App Store and Google Play.

[1] https://x.com/HODL15Capital/status/1878955046551109760/photo/1
[2] https://bitcoinist.com/oklahoma-becomes-6th-state-to-embrace-bitcoin/

About Thumzup®

Thumzup Media Corporation (Thumzup) is democratizing the multi-billion dollar social media branding and marketing industry. Its flagship product, the Thumzup platform, utilizes a robust programmatic advertiser dashboard coupled with a consumer-facing App to enable individuals to get paid cash for posting about participating advertisers on major social media outlets through the Thumzup App. The easy-to-use dashboard allows advertisers to programmatically customize their campaigns. Cash payments are made to App users/creators through PayPal and other digital payment systems.

Thumzup was featured on CBS Los Angeles and in KTLA.

Legal Disclaimer

This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These include, without limitation, statements about its potential growth, impacts on the advertising industry, plans for potential uplisting, and planned expansion. These statements are identified by the use of the words "could," "believe," "anticipate," "intend," "estimate," "expect," "may," "continue," "predict," "potential," "project" and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results may differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in our filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

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SOURCE Thumzup Media Corporation

FAQ

How many Bitcoin does Thumzup (TZUP) currently hold in 2024?

Thumzup (TZUP) currently holds 19.106 Bitcoin (BTC) as of January 30, 2024.

What percentage of surplus cash can TZUP invest in Bitcoin?

Thumzup (TZUP) is authorized to hold up to 90% of its surplus cash in Bitcoin.

When did Thumzup (TZUP) announce its initial Bitcoin treasury strategy?

Thumzup announced its initial Bitcoin treasury strategy on November 15, 2024.

How many states have introduced Bitcoin Strategic Reserve legislation related to TZUP's strategy?

Six states have introduced legislation to establish Strategic Bitcoin Reserves, aligning with the broader institutional adoption that TZUP is participating in.