Thumzup shares rise as company pivots to Dogecoin mining

Published 05/09/2025, 12:16
Thumzup shares rise as company pivots to Dogecoin mining

VANCOUVER - Thumzup Media Corporation (NASDAQ:TZUP) shares rose 5.29% Thursday after the company announced its strategic shift toward cryptocurrency mining, particularly focusing on Dogecoin operations, entering a volatile sector where established players have shown strong growth potential.

In a shareholder letter, Thumzup outlined plans to acquire DogeHash Technologies, a Dogecoin mining company currently operating 2,500 mining rigs with an additional 1,000 miners on order for delivery later this year. The pending acquisition requires shareholder approval.

The company has been building its cryptocurrency strategy since January 2025, when it initially invested $1 million in Bitcoin. Thumzup subsequently raised $6.5 million in June at $6 per share from strategic investors, followed by a $50 million common stock offering in August at $10 per share through Dominari Securities.

According to the company, the acquisition would position Thumzup as one of the few publicly-traded, utility-scale Dogecoin miners. The company cited Bitmain mining calculator estimates suggesting that 3,500 miners similar to those used by DogeHash could potentially generate annual revenues ranging from $22.7 million at current Dogecoin prices ($0.22) to $103.19 million if Dogecoin reached $1.00.

Thumzup has expanded its partnership with Coinbase Prime, establishing a Bitcoin-backed credit facility and gaining access to trading, financing, and custody services. The company has also created a crypto advisory board, appointing Alex Hoffman, head of ecosystem at DogeOS, as its first member.

The announcement comes as other cryptocurrency mining companies report their August operations. MARA Holdings (NASDAQ:MARA) produced 208 blocks in August while growing its Bitcoin holdings to over 52,000 BTC. CleanSpark (NASDAQ:CLSK) reported increased average operating hashrate and a Bitcoin treasury of nearly 13,000. According to InvestingPro data, CleanSpark has demonstrated remarkable revenue growth of 84.66% over the last twelve months, with a healthy current ratio of 4.37 indicating strong liquidity. InvestingPro analysis suggests the stock is currently trading near its Fair Value, with two key ProTips highlighting its profitable operations and strong sales growth expectations. Subscribers can access 8 additional ProTips and a comprehensive Pro Research Report covering what really matters about CleanSpark’s financial health and growth prospects.

This information is based on a company press release statement and enhanced with InvestingPro data analysis.

In other recent news, CleanSpark reported third-quarter revenue of $198.6 million, showing a 91% increase compared to the previous year. This revenue figure closely aligned with FactSet’s consensus estimates and slightly exceeded Macquarie’s projection of $196.1 million. Following these results, Macquarie raised its price target for CleanSpark to $20, maintaining an Outperform rating. Similarly, Cantor Fitzgerald increased its price target to $26, citing the company’s strong growth and maintaining an Overweight rating.

In August, CleanSpark mined 657 bitcoin, with an average daily production of 21.20 bitcoin, and its bitcoin treasury reached 12,827 BTC by the end of the month. The company also announced a leadership change, appointing co-founder Matt Schultz as CEO after Zachary Bradford’s resignation. Schultz, who played a key role in the company’s transition to bitcoin mining, reaffirmed CleanSpark’s commitment to its strategic plans. These developments reflect CleanSpark’s ongoing efforts to strengthen its position in the bitcoin mining industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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