Donald Trump Jr. sells large Thumzup stake as firm targets BTC, ETH, SOL, XRP, and crypto mining
Quick Take Thumzup recently raised $50 million through a public offering to expand into crypto mining as well as fund token purchases for its multi-asset treasury. Donald Trump Jr. was listed as one of the largest selling shareholders.
Donald Trump Jr. was listed as one of the largest selling shareholders in another digital asset treasury company, Los Angeles-based social media firm Thumzup (ticker TZUP). The firm recently raised $50 million to expand into crypto mining as well as fund token purchases for its multi-asset treasury, including tokens like Dogecoin, Ether, Litecoin, Solana, and XRP.
According to a filing with the U.S. Securities and Exchange Commission, President Donald Trump's eldest son held approximately 350,000 TZUP shares before the company’s secondary stock offering, which closed this week and is expected to net $46.5 million after fees.
Thumzup, the operator of an adtech app that enables users to earn cash for their social media content, is one of the latest public firms to announce a crypto acquisition strategy — part of a trend of so-called digital asset treasuries (DATs) that buy tokens using capital raised by public or private securities sales.
Thumzup’s offering was made following a shelf registration filed on May 2 and declared effective by the SEC on May 30. It’s unclear when Trump first purchased stock in the firm, though his name is absent from its regulatory documents up until July , when he was listed as one of 11 selling shareholders looking to offload 3,250,000 TZUP shares in the offering.
Several venture firms were listed as selling shareholders alongside fund manager Valkyrie, real estate group American Ventures, as well as several private individuals in the regulatory filing, dated July 9. Outside of the VC and investment firms, Trump Jr. was the largest individual seller.
Unlike many DATs, Thumzup also plans to expand into mining. The firm is "actively engaging with leading mining technology providers to accelerate the buildout and position its operations at the forefront of the industry," according to a press release on Wednesday.
"This is a transformative step in Thumzup's evolution," Thumzup CEO Robert Steele said. "With a strengthened capital base and a clear strategic vision, we are expanding our reach into high-growth areas of the digital economy. Our focus is on building durable, revenue-generating assets while positioning the Company as a leader in digital asset mining and treasury management."
The Trump family has taken an active — and often controversial — role in the crypto sector, including by founding or investing in several startups, including the DeFi and stablecoin project World Liberty Financial and the American Bitcoin mining company. Bloomberg estimated the family has profited $620 million from their crypto venture proceeds in recent months.
Notably, Eric Trump is listed as chief strategy officer of American Bitcoin, a subsidiary of Hut 8 (ticker HUT) that is looking to go public through a merger, while Donald Jr. is a large shareholder.
Eric Trump has previously stated the family’s interest in crypto arose due to problems with being debanked and censored .
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
CoreWeave Dilemma for Nvidia: Forced to Rescue or Stand By?
As both a shareholder of CoreWeave and its sole GPU supplier, Nvidia now faces a dilemma after the sharp decline in CoreWeave's stock price. If it intervenes, each rescue strengthens expectations of a safety net, raises the threshold for future rescues, and risks getting further entangled in this high-leverage game. If it does not intervene, CoreWeave's liquidity crisis will directly cut off demand for GPU purchases, simultaneously devaluing Nvidia's equity investment and severely damaging its market reputation.
US CPI Heats Up Across the Board, Triggering "Inflation Spiral" Alert; October Rate Hike Odds Once Hit 50%. "New Fed News Agency": Watch Waller's Speech This Week
After the CPI was released, the market-implied rate hike probability first rose to 50% before falling back to 40%. Wall Street generally believes that whether action will be taken in October still depends on how the Federal Reserve assesses inflation trends. "The New Fed News Agency" noted that, unlike in August when price increases were concentrated in certain items, the stronger-than-expected performance of September's core CPI was more broad-based, further reinforcing the case for a December rate hike. The speech by Waller on Friday morning Beijing time is his last public statement before the Fed's blackout period ahead of this month's meeting. Economists are warning about an "inflation spiral," with real purchasing power and midterm election pressures interweaving.
The calm period in the US stock market is over! The S&P 500 ends its record of 53 consecutive trading days without a drop of over 1%. AI stock sell-off intensifies market concerns.
The S&P 500 Index fell by 1.1%, ending a streak of 53 consecutive trading days without a drop of 1% or more. This was the longest period of calm since January 2020.
Federal Reserve Beige Book: U.S. economy expands moderately but inflationary pressures intensify; AI boosts productivity curbing some corporate hiring demand
The latest Beige Book released by the Federal Reserve on Wednesday shows that overall economic activity in the United States continues to grow, but performance varies across regions. Consumer spending remains generally weak, and there has been little change in the labor market.
Crypto prices
More
