Thumzup to acquire Dogehash in all-stock deal for Dogecoin mining

LOS ANGELES - Thumzup Media Corporation (NASDAQ:TZUP), currently valued at $161 million in market capitalization, announced Tuesday it will acquire Dogehash Technologies in an all-stock transaction valued at 30.7 million shares, with plans to rename the combined entity "Dogehash Technologies Holdings, Inc." and change its ticker to "XDOG." InvestingPro data shows the stock has demonstrated significant volatility, with a remarkable 236% price return over the past six months.

The deal, expected to close in the fourth quarter pending shareholder approval, will transform Thumzup into a publicly traded company focused on Dogecoin mining operations. According to InvestingPro analysis, the company currently shows weak financial health metrics, with a concerning current ratio of 0.27, indicating potential liquidity challenges that the merger might address.

Dogehash currently operates approximately 2,500 Scrypt ASIC miners in North America, with additional units expected to be deployed later this year. The company’s mining operations are primarily based at a renewable-energy data center.

"This accelerates our evolution from a digital-marketing platform into a diversified digital-asset infrastructure and treasury company," said Robert Steele, Chief Executive Officer of Thumzup.

Parker Scott, Chief Executive Officer of Dogehash, stated, "Unlike many companies that simply used their cash to buy cryptocurrency, we have invested in mining infrastructure."

In July, Thumzup completed a $50 million common stock offering, with a portion designated for mining equipment purchases and digital asset accumulation.

The combined company aims to focus on mining Dogecoin and Litecoin while exploring utility-driven applications that leverage Dogecoin’s transaction capabilities. According to the press release statement, Dogecoin ranks among the largest cryptocurrencies by market capitalization and consistently records billions in daily trading volume.

Following the acquisition, the company plans to periodically report detailed performance metrics of its mining operations. The transaction represents a strategic pivot for Thumzup, which has been expanding its treasury strategy beyond Bitcoin to include various cryptocurrencies. With last twelve months EBITDA at -$6.41 million, this transformation comes at a crucial time. Get deeper insights into TZUP’s financial health and 10+ additional exclusive ProTips with InvestingPro.

In other recent news, Thumzup Media Corporation announced the closing of a $50 million public offering, with shares priced at $10 each. The company plans to utilize the proceeds for cryptocurrency accumulation and mining equipment purchases, as well as for general corporate purposes. Thumzup also revealed an expansion of its strategic relationship with Coinbase to accelerate its cryptocurrency accumulation and mining strategy, with Coinbase Prime acting as custodian and prime broker. Additionally, Thumzup announced a $50 million expansion into cryptocurrency mining and blockchain investments, focusing on energy efficiency and operational scalability. The company aims to bolster its Digital Asset Treasury through the targeted accumulation of established cryptocurrencies. Previously, Thumzup had priced a $46.5 million public offering, including common stock and pre-funded warrants, which was expected to close subject to customary conditions. These developments highlight Thumzup’s strategic focus on expanding its digital asset strategy.

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