Thumzup Media Corporation Expands Strategic Relationship with Coinbase to Accelerate Cryptocurrency Accumulation

Rhea-AI Summary

Thumzup Media Corporation (Nasdaq: TZUP) has expanded its strategic partnership with Coinbase Prime to accelerate its cryptocurrency accumulation and mining strategy. The company successfully raised $50 million at $10 per share to diversify its crypto holdings and acquire mining equipment.

Key developments include authorization to allocate up to 90% of liquid assets to cryptocurrencies and the establishment of a Bitcoin-backed credit facility with Coinbase Prime in May 2025. The partnership provides Thumzup with institutional-grade trading, financing solutions, and NYDFS-qualified custody services to support its Digital Asset Treasury strategy.

Positive

• None.

Negative

• High cryptocurrency exposure (90% of liquid assets) presents significant market risk
• Substantial capital allocation to volatile digital assets may impact financial stability

Insights

Financial Strategist

Thumzup's $50M raise and aggressive 90% crypto allocation strategy represents a major pivot toward becoming a significant digital asset player.

Thumzup Media Corporation has made a substantial strategic shift with its $50 million capital raise at $10 per share, positioning itself as a digital asset accumulator rather than just an advertising industry company. The 90% allocation permission for liquid assets to cryptocurrencies represents one of the most aggressive crypto treasury strategies among public companies - significantly higher than most corporate Bitcoin adopters who typically maintain 5-10% allocations.

The Bitcoin-backed credit facility with Coinbase Prime is particularly notable as it provides non-dilutive capital access, allowing Thumzup to leverage its existing crypto holdings without selling additional shares. This structure enables the company to potentially accelerate its digital asset accumulation while maintaining its current capitalization structure, which they've described as "shareholder-friendly."

While the press release positions this as an "expansion" of an existing relationship, the scale of the capital raise suggests a fundamental transformation of Thumzup's business model. The company appears to be evolving beyond its original advertising focus into a hybrid business that includes significant cryptocurrency mining operations and digital asset accumulation. This represents a material change in business strategy that alters the company's risk profile, potentially providing greater exposure to cryptocurrency price movements than its core advertising technology business.

The $50 million raise at $10 per share provides important near-term capital, but investors should note that the company's future performance will likely become increasingly correlated with cryptocurrency markets given the 90% allocation policy. This essentially transforms Thumzup into a publicly-traded cryptocurrency investment vehicle with an advertising technology component.

$50 Million Raise at $10/Share Positions Thumzup for Aggressive Crypto Portfolio Growth and Mining Buildout

The Company is Authorized to Allocate Up to 90% of Liquid Assets to Cryptocurrencies, Strengthens Strategic Flexibility

Thumzup Established Bitcoin-Backed Credit Facility with Coinbase Prime to Enhance Non-Dilutive Capital Access

LOS ANGELES, Aug. 13, 2025 /PRNewswire/ -- Thumzup Media Corporation (Nasdaq: TZUP) ("Thumzup" or the "Company"), a digital asset accumulator and advertising industry disruptor, today announced the expansion of its strategic relationship with Coinbase (Nasdaq: COIN) as part of its accelerated cryptocurrency accumulation and mining strategy. Under the agreement, Coinbase Prime, an integrated platform that unifies trading, financing, and custody with integrated risk management, capital efficiency, and seamless execution, will continue to serve as Thumzup's custodian and prime broker, providing institutional-grade trading and financing solutions, all backed by NYDFS-qualified custody.

Recently, Thumzup successfully closed a $50 million offering at $10 per share, with proceeds earmarked to diversify the Company's cryptocurrency holdings and acquire state-of-the-art mining rigs, while preserving a simple and shareholder-friendly capitalization structure.

In May 2025, Thumzup deepened its capital markets strategy by establishing a Bitcoin ("BTC")-backed credit facility with Coinbase Prime. This facility provides the Company with flexible, non-dilutive capital, further supporting its Digital Asset Treasury ("DAT") strategy. Thumzup is authorized to hold up to 90% of its liquid assets in cryptocurrencies, making it one of the most aggressive and forward-looking allocation policies among publicly traded companies.

"Expanding our collaboration with Coinbase Prime reinforces our commitment to building one of the most strategically managed and growth-focused digital asset treasuries in the public markets," said Robert Steele, CEO of Thumzup Media Corporation. "Coinbase Prime's institutional infrastructure and expertise provide an unparalleled platform for execution as we scale both our crypto accumulation and mining operations."

"Our mission is to help institutions scale their crypto strategies with best-in-class infrastructure, combining military-grade security with world-class custody to power the next iteration of finance operations," said Ryan Ballantyne, Head of Corporate Client Strategy, Coinbase. "We're proud to power Thumzup Media Corporation's expansion in crypto accumulation and mining with our purpose-built platform - delivering secure, trusted custody as they scale their digital asset capabilities."

About Thumzup®

Thumzup Media Corporation is pioneering a new era of digital marketing and financial innovation. The Company operates a proprietary platform that empowers users to earn cash for sharing branded content on social media, seamlessly managed through a programmatic advertiser dashboard. Payments are made via PayPal and other leading digital channels.

In parallel with the growth of its AdTech platform, Thumzup has strategically expanded its treasury strategy beyond Bitcoin to include leading cryptocurrencies, such as Dogecoin, Litecoin, Solana, Ripple, Ether, and USD Coin, reinforcing the Company's commitment to financial agility and innovation.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These include, without limitation, statements about the intended use of proceeds from the Offering, including the acquisition of digital assets and a change of circumstances and adverse changes in the crypto market including federal legislation and adverse regulations, market and other conditions. These statements are identified by the use of the words "could," "believe," "anticipate," "intend," "estimate," "expect," "may," "continue," "predict," "potential," "project" and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although the Company believes that its plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, it can give no assurances that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results may differ materially from those in the forward-looking statements. Other risks are contained in the Company's filings with the SEC, including in the Company's Annual Report on Form 10-K. Investors and security holders are urged to read these documents free of charge on the SEC's website at: http://www.sec.gov. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

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SOURCE Thumzup Media Corporation

FAQ

How much did Thumzup Media (TZUP) raise in their recent offering?

Thumzup raised $50 million at $10 per share to fund cryptocurrency holdings expansion and mining rig acquisitions.

What percentage of assets can Thumzup invest in cryptocurrencies?

Thumzup is authorized to allocate up to 90% of its liquid assets to cryptocurrencies, representing one of the most aggressive allocation policies among public companies.

What is the purpose of Thumzup's partnership with Coinbase Prime?

The partnership provides Thumzup with institutional-grade trading, financing solutions, and NYDFS-qualified custody services to support its cryptocurrency accumulation and mining strategy.

When did Thumzup establish its Bitcoin-backed credit facility with Coinbase?

Thumzup established its Bitcoin-backed credit facility with Coinbase Prime in May 2025 to access flexible, non-dilutive capital.

How will Thumzup use the $50 million raised?

The proceeds will be used to diversify cryptocurrency holdings and acquire state-of-the-art mining rigs while maintaining a shareholder-friendly capitalization structure.