More Public Companies Taking a Long-Term Treasury Asset Strategy with Cryptocurrency

Rhea-AI Summary

Thumzup Media (NASDAQ: TZUP) is making significant moves in cryptocurrency investment as part of its treasury asset strategy. The company recently purchased 9.323 Bitcoin for $999,722 (average price $107,231 per BTC), bringing its total holdings to 19.106 Bitcoin at an average price of $104,650.

The company's Board has authorized allocating up to 90% of surplus cash to Bitcoin holdings. Additionally, Thumzup plans to begin paying gig-economy workers in BTC. The company recently reported strong business growth, exceeding 600 advertisers, and has integrated with X (formerly Twitter) to connect advertisers with over 535 million monthly active users.

This strategic move aligns with a broader trend of public companies incorporating cryptocurrency into their treasury strategies, following President Trump's announcement to make the US the 'World Capital of AI and Crypto' and his executive order on digital financial technology leadership.

Positive

• Acquired 19.106 Bitcoin at average price of $104,650 per BTC
• Board authorized allocation of up to 90% of surplus cash to Bitcoin
• Advertiser base grew to over 600 businesses
• Integrated with X platform, accessing 535 million monthly active users
• Plans to implement Bitcoin payments for gig workers

Negative

• Significant cash allocation to volatile cryptocurrency assets
• High exposure to Bitcoin price fluctuations

Insights

Cryptocurrency Investment Strategist

Thumzup's aggressive Bitcoin treasury strategy marks a bold but potentially risky pivot for a company of its size. With a market cap of $34.1 million, allocating up to 90% of surplus cash to Bitcoin represents an unusually high concentration in a volatile asset. This strategy differs notably from larger players like MicroStrategy, which maintains significant operational reserves alongside its Bitcoin holdings.

The timing of their Bitcoin purchases, with an average entry of $104,650 per BTC, coincides with historical price highs, introducing significant near-term volatility risk. However, the integration of Bitcoin payments for gig workers could create operational synergies, potentially reducing transaction costs and attracting crypto-savvy talent.

Their core business shows promising growth, reaching 600 advertisers and expanding into X (formerly Twitter) with AI integration. This operational momentum provides some diversification against Bitcoin exposure risks. However, investors should note that tying working capital so closely to cryptocurrency could impact operational flexibility during market downturns.

The broader institutional adoption trend, evidenced by MicroStrategy's continued accumulation and Hut 8's strategic purchases, suggests growing mainstream acceptance. Trump's executive order for cryptocurrency regulation review could reduce regulatory uncertainty, though the 60-day recommendation timeline indicates potential near-term policy shifts that could affect corporate Bitcoin holdings.

Critical success factors will include maintaining sufficient operational liquidity, managing volatility risks and ensuring the Bitcoin treasury strategy complements rather than overshadows their core advertising technology business. The company's small size relative to its Bitcoin exposure makes this an particularly high-stakes strategy that demands close monitoring by investors.

Vancouver, Kelowna, and Delta, British Columbia--(Newsfile Corp. - January 30, 2025) - Investorideas.com, a global news source and expert investing resource covering crypto and tech stocks issues a snapshot looking at stocks that are taking a long-term treasury asset strategy with cryptocurrency, featuring Thumzup Media Corporation (NASDAQ: TZUP), an emerging leader in social media branding and programmatic marketing solutions.

Read the full article on Investorideas.com
https://www.investorideas.com/News/2025/cryptocurrency/01300Long-Term-Treasury-Asset-Strategy-with-Cryptocurrency.asp

A revolution in the financial markets is underway as more public companies and institutions look at Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) as part of their long-term treasury asset strategy. Although cryptocurrencies come with volatility, they offer global liquidity and accessibility 24/7 and the potential for long-term financial gain.

Always a leader in innovation, Tesla's Elon Musk led the charge for this new era, investing 1.5 billion in Bitcoin in 2021. Although Tesla sold most of its holdings, it established a precedent for bold thinking in digital assets.

Now under a Trump Presidency, cryptocurrency is gaining market acceptance and confidence and accelerating its role in corporate finance. The public companies on board with this new strategy are not just in the crypto space, they range from biotech to nanotech, to tech stocks.

Tech innovator Thumzup Media Corporation (NASDAQ: TZUP) is building on its current growth in social media branding and programmatic marketing solutions by making game changing moves in Bitcoin. According to a recent 8K Filing, On January 21, 2025, the Company purchased 9.323 Bitcoin ("BTC") for $999,722, an average price of $107,231 per Bitcoin, inclusive of fees and expenses ("BTC Investment").

As of January 21, 2025, Thumzup holds 19.106 Bitcoin at an average price of $104,650 per BTC.

On January 24^th Thumzup Media announced that its Board of Directors has authorized the allocation of up to 90% of the company's surplus cash to be held in Bitcoin. This decision supports the company's ongoing Bitcoin acquisition efforts as part of its Treasury Asset Strategy, announced on November 15, 2024.

This strategic move reflects Thumzup's confidence in Bitcoin as a long-term store of value and a groundbreaking asset class. By diversifying its treasury assets, the company aims to optimize its financial stability and create additional value for shareholders.

"I am excited about President Trump's announcement at Davos on Thursday, that he will make the United States the 'World Capital of Artificial Intelligence and Crypto.' Additionally, the President issued an Executive Order titled 'Strengthening American Leadership in Digital Financial Technology' on the same day. This order directs the Secretary of the Treasury, the Chairman of the Securities and Exchange Commission, and the Chairman of the Commodity Futures Trading Commission to establish the President's Working Group on Digital Asset Markets. The working group has been tasked with providing recommendations within 60 days on regulations concerning cryptocurrencies that should be rescinded or modified. I believe this initiative greatly strengthens the future of digital assets like Bitcoin and cryptocurrencies," said Robert Steele, Chief Executive Officer of Thumzup.

In addition to this initiative, Thumzup plans to begin paying gig-economy workers in BTC in the coming weeks, marking a significant step toward integrating Bitcoin into its operational framework. The company is working diligently to ensure compliance with all applicable laws and regulations while enabling a user-friendly payment experience for its workforce.

Looking at its core business, in late December Thumzup reported continued strong growth in its advertiser base, which now exceeds 600, just weeks after the Company announced it surpassed 500 advertisers. This momentum and robust growth trajectory should position Thumzup as an increasingly disruptive force in social media advertising.

"Our rapid expansion to over 600 advertisers highlights the strength of our disruptive advertising model," stated Robert Steele, CEO of Thumzup. "As a leader in authentic and creator driven social media advertising, our platform continues to empower brands with wider access to various audiences, while offering users real monetary incentives for our app users. This growth is a testament to the effectiveness of our innovative approach."

To further enhance its platform, Thumzup recently integrated with X (formerly Twitter), connecting advertisers with over 535 million monthly active users. Thumzup is also partnering with Tedras Global Solutions to leverage AI for improved ad targeting, campaign optimization and enhanced user experiences.

Thumzup is working to redefine the digital advertising landscape with its proprietary technology and scalable growth model. This unique approach combines a programmatic advertiser dashboard with a user-centric app that incentivizes engagement through direct cash payouts, disrupting traditional advertising norms and driving measurable results.

MicroStrategy Incorporated is the world's first and largest Bitcoin Treasury Company. According to their website, "We are a publicly traded company that has adopted Bitcoin as our primary treasury reserve asset. By using proceeds from equity and debt financings, as well as cash flows from our operations, we strategically accumulate Bitcoin and advocate for its role as digital capital. Our treasury strategy is designed to provide investors varying degrees of economic exposure to Bitcoin by offering a range of securities, including equity and fixed-income instruments. In addition, we provide industry-leading AI-powered enterprise analytics software, advancing our vision of Intelligence Everywhere. We leverage our development capabilities to explore innovation in Bitcoin applications, integrating analytics expertise with our commitment to digital asset growth. We believe our combination of operational excellence, strategic Bitcoin reserve, and focus on technological innovation positions us as a leader in both the digital asset and enterprise analytics sectors, offering a unique opportunity for long-term value creation."

On January 27^th MicroStrategy announced that, subject to market and other conditions, it intends to offer, in a public offering registered under the Securities Act of 1933, as amended (the "Securities Act"), 2,500,000 shares of MicroStrategy's Series A Perpetual Strike Preferred Stock.

From the news: MicroStrategy intends to use the net proceeds from the offering for general corporate purposes, including the acquisition of Bitcoin and for working capital.

Continued: The perpetual strike preferred stock will have a liquidation preference of $100 per share and will accumulate cumulative dividends at a fixed rate that will be determined at the pricing of the offering. Regular dividends on the perpetual strike preferred stock will be payable when, as and if declared by MicroStrategy's board of directors, out of funds legally available for their payment to the extent paid in cash, quarterly in arrears on March 31, June 30, September 30 and December 31 of each year, beginning on March 31, 2025. Declared regular dividends on the perpetual strike preferred stock will be payable, at MicroStrategy's election, in cash, shares of class A common stock or a combination of cash and shares of class A common stock, in the manner, and subject to the provisions, described in the prospectus supplement for the offering.

Bitcoin Magazine recently reported, "MicroStrategy has once again solidified its position as the largest corporate holder of Bitcoin, announcing the acquisition of an additional 10,100 BTC for $1.1 billion. The latest purchase, made at an average price of $105,596 per Bitcoin, occurred just before a market correction saw Bitcoin's price dip 6% below $100,000."

Also betting on the long-term potential of Bitcoin, Hut 8 Corp., a leading, vertically-integrated operator of large-scale energy infrastructure and one of North America's largest Bitcoin miners, in mid-December announced the purchase of approximately 990 Bitcoin. The aggregate purchase price of the acquired Bitcoin was approximately $100 million, or an average of approximately $101,710 per Bitcoin.

From the news: Combined with the Bitcoin held prior to this purchase, Hut 8's strategic Bitcoin reserve now totals 10,096 Bitcoin with a market value of more than $1 billion as of December 18, 2024. Based on publicly available information, the Company believes this positions it as one of the ten largest corporate owners of Bitcoin in the world. The 10,096 Bitcoin held in reserve were acquired through low-cost production and the strategic at-market purchase announced today for a realized average cost of $24,484 per Bitcoin. The purchased Bitcoin will play a central role in an innovative financing model for the Company's previously announced fleet upgrade.

The trend for public companies investing in Bitcoin is so dominant in the crypto space that Coingecko.com now reports on 32 public company holdings.

Following just behind Microstrategy on their list is Marathon Digital Holdings with a total of 26,842 Bitcoin and according to their report, Hut 8 Corp. has now moved to 6^th position. And even though Tesla sold off most of its holdings, it is still ranked in the top 10 at 4^th.

With President Trump's bullish sentiment towards crypto, this trend is expected to increase.

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FAQ

How much Bitcoin does Thumzup (TZUP) currently hold?

As of January 21, 2025, Thumzup holds 19.106 Bitcoin at an average price of $104,650 per BTC.

What percentage of surplus cash will TZUP allocate to Bitcoin?

Thumzup's Board has authorized the allocation of up to 90% of the company's surplus cash to be held in Bitcoin.

How many advertisers does Thumzup (TZUP) currently have?

Thumzup has exceeded 600 advertisers as of late December 2024.

What was the cost of TZUP's latest Bitcoin purchase?

On January 21, 2025, Thumzup purchased 9.323 Bitcoin for $999,722, at an average price of $107,231 per Bitcoin.

How will Thumzup (TZUP) integrate Bitcoin into its operations?

Thumzup plans to begin paying its gig-economy workers in Bitcoin in the coming weeks, while ensuring compliance with applicable regulations.