Agreements to acquire DogeHash’s 3,500 Dogecoin miners have been executed by Thumzup, with the company projecting up to $103 million in annual revenue should DOGE reach $1.
The acquisition of 3,500 Dogecoin mining rigs is planned by Thumzup, a media corporation tied to the Trump family. The firm projects up to $103 million in annual revenue, contingent on Dogecoin reaching the $1 mark.
In a shareholder letter published on Thursday, it was revealed that definitive agreements were executed by Thumzup Media Corporation to acquire a Dogecoin mining operation, pending shareholder approval. The deal includes an initial 2,500 rigs, with an additional 1,000 on order.
A pivot from an adtech platform to cryptocurrency mining was announced by the company in August, to be achieved through the pending acquisition of DogeHash Technologies, which operates the Dogecoin miners.
The unified company will be rebranded as Dogehash Technologies Holdings and will trade with the symbol XDOG. The firm also reported the finalization of a $50 million equity offering the previous month.
Bold predictions about using 3,500 Bitmain Antminers to mine Dogecoin were also made by the firm. At current prices, the company expects an annual revenue of $22.7 million, a figure that could jump to $103 million if Dogecoin hits $1, it contended.
DOGE is currently being traded at $0.214 today, a decline that leaves it more than 70% below its 2021 all-time high.
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The publicly traded miner BIT Mining was cited by Thumzup as having reported in December that its Dogecoin mining operations were nearly three times more profitable than solely mining Bitcoin BTC.
Dogecoin, with a market cap surpassing $32 billion and a daily trading volume of $1.3 billion, is considered one of the most broadly held cryptocurrencies, the firm noted.
The $10.5 billion crypto mining market, which is projected to more than double by 2035, is being cited by Thumzup as it positions itself as one of the few publicly traded, utility-scale Dogecoin miners.
A plan to capture 10% of the Dogecoin mining capacity was announced by KuCoin this week, as more companies pivot toward alternative crypto assets.
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In addition to Bitcoin, the holding of Dogecoin, Litecoin, Solana, XRP, Ether, and USDC has been authorized by the Thumzup board.
Thumzup’s holdings of 19.1 BTC are valued at approximately $2.1 million, as reported by BitcoinTreasuries.NET.
A purchase of 350,000 shares in the firm was made by Donald Trump Jr., son of US President Donald Trump, according to a July filing. The Trump family’s connection also runs deeper through Dominari Securities, the investment bank that has facilitated Thumzup’s fundraising.
A 5.3% gain was registered by the firm’s stock (TZUP) on the day, ending the session at $5.57, according to Google Finance. The shares have declined sharply from their August high of more than $15, but still have a year-to-date gain of 62%.
