Thumzup Media Corporation, a company linked to Donald Trump Jr., is moving into the world of cryptocurrency mining.
The company announced that it plans to buy 3,500 machines, known as mining rigs, to produce Dogecoin. If Dogecoin ever reaches the price of one dollar, Thumzup believes the project could bring in up to $103 million in revenue each year.
In the announcement, Thumzup said it has signed agreements to buy DogeHash Technologies, a company that already runs Dogecoin miners. The deal is still waiting for shareholder approval.
Once approved, Thumzup will gain 2,500 machines that are already working and another 1,000 machines that are ordered. After the deal, the company will change its name to Dogehash Technologies Holdings and trade on the stock market under the ticker XDOG.
Earlier in August, Thumzup raised $50 million through a share sale to support this new direction. The company explained that with Dogecoin priced at about $0.214 today, the mining machines could earn around $22.7 million a year. If the coin rises to $1, the yearly earnings could jump to $103 million.
Dogecoin, however, has not done well this year . The price is still more than 70 percent lower than its highest point in 2021. But Thumzup pointed to data from miner BIT Mining, which showed that Dogecoin mining was nearly three times more profitable than Bitcoin mining at the end of last year.
In its letter, the company said, “Dogecoin, with a market capitalization exceeding $32 billion and a daily trading volume of $1.3 billion, is one of the most widely held cryptocurrencies.”
The company believes the timing is right because the crypto mining market, which is valued at $10.5 billion, is expected to more than double by 2035. Other companies are also moving in. This week, KuCoin said it plans to take 10 percent of the Dogecoin mining market.
Thumzup is also holding several other digital coins. The board approved Bitcoin, Litecoin, Solana, XRP, Ether, and USDC as part of its reserves.
Right now, the company owns 19.1 Bitcoin worth about $2.1 million. A filing in July showed Donald Trump Jr. bought 350,000 shares. Fundraising support has also come from Dominari Securities, another group with Trump family ties.
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