Thumzup Media Corp., whose largest shareholder is Donald Trump Jr., announced that it will acquire Dogehash Technologies, a mining company for Dogecoin and Litecoin, through a stock swap. As part of the deal, the combined company will be rebranded as Dogehash Technologies Holdings, Inc. and will begin trading on Nasdaq under the ticker symbol XDOG.
A Massive $153.8 Million Deal
According to a statement released Tuesday, Dogehash shareholders will receive a total of 30.7 million Thumzup shares. This represents a valuation of approximately $153.8 million based on the company's last closing price. The deal is expected to be finalized by the end of the year after shareholder approval.
Dogehash currently mines approximately 2,500 Scrypt-based ASIC devices in renewable energy-powered data centers in North America. The company focuses primarily on mining Dogecoin (DOGE) and Litecoin (LTC) and plans to further expand its capacity by 2026. Thumzup CEO Robert Steele stated that this merger is a critical step in the company's transformation:
“Dogehash offers a world-class mining operation powered by low-cost renewable energy. Our vision is not only to efficiently mine Dogecoin and Litecoin; we also leverage Dogecoin's fast transaction times and low fees to expand its use cases, such as daily payments and rewards systems.”
Dogehash CEO Parker Scott emphasized their long-term strategy, saying that owning and operating their own fleet will put the company ahead of its competitors.
It's also worth noting that Thumzup is the company behind Truth Social, a platform frequently used by US President Donald Trump.
The Trump Family's Growing Crypto Empire
This move adds another link to the Trump family's crypto investments. Donald Trump Jr. and Eric Trump partnered with Hut 8 to establish American Bitcoin earlier this year. World Liberty Financial, another Trump-backed venture, decided to add the WLFI token to the company's treasury as part of a $1.5 billion deal with Nasdaq-listed ALT5 Sigma.
Thumzup shares plummeted following the announcement of the deal. The company's shares fell 41% in one day to $5.01. Analysts attributed this decline to stock dilution and operational risks.
Doge's price was also affected by the general market sell-off during the same period. DOGE fell 1.09% in the last 24 hours to $0.213, bringing its weekly losses to over 11%.
