Thumzup closes $50 million public offering at $10 per share

LOS ANGELES - Thumzup Media Corporation (NASDAQ:TZUP) announced Tuesday the closing of its previously disclosed public offering of common stock, raising $50 million in gross proceeds before deducting placement agent fees and other expenses. The announcement comes as the stock has experienced significant volatility, dropping 27.6% in the past week despite posting impressive gains of 193% over the last six months, according to InvestingPro data.

The digital asset accumulator and advertising company sold shares at $10 each and plans to use the net proceeds to explore cryptocurrency accumulation and mining equipment purchases, as well as for working capital and general corporate purposes. The company maintains a healthy liquidity position with a current ratio of 3.36, though InvestingPro analysis indicates it remains unprofitable with negative EBITDA of $5.36 million in the last twelve months.

Dominari Securities LLC served as the exclusive placement agent for the transaction, which was conducted under a shelf registration statement filed with the Securities and Exchange Commission in May 2025.

"The Company intends to use the net proceeds from the Offering to explore the accumulation of cryptocurrencies and mining equipment, working capital and general corporate purposes," Thumzup stated in a press release.

Thumzup operates a platform that allows users to earn cash for sharing branded content on social media. The company has expanded its treasury strategy to include various cryptocurrencies beyond Bitcoin, such as Dogecoin, Litecoin, Solana, Ripple, Ether, and USD Coin. Trading at a price-to-book ratio of 39.95, the stock currently appears overvalued according to InvestingPro Fair Value metrics, with 10+ additional ProTips available for subscribers.

The offering was made pursuant to a shelf registration statement initially filed on May 2, 2025, and declared effective by the SEC on May 30, 2025. A final prospectus supplement and accompanying prospectus were filed with the SEC on Tuesday.

In other recent news, Thumzup Media Corporation announced the pricing of a public offering expected to generate gross proceeds of $46.5 million, with shares priced at $10 each. This offering includes common stock and pre-funded warrants for certain investors, and it is anticipated to close around August 12, subject to customary conditions. Previously, Thumzup had launched a public offering of Series D Non-Voting Convertible Preferred Stock but later revised the terms to include common stock and pre-funded warrants. The company plans to use the proceeds from this offering for cryptocurrency accumulation, mining equipment purchases, and general corporate purposes. In a significant move, Thumzup’s Board has also approved a $250 million diversification of its cryptocurrency portfolio, which will now include various cryptocurrencies such as Bitcoin, Ether, and Solana. These developments come amid a backdrop of strategic financial maneuvers aimed at expanding the company’s digital asset holdings.

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