Trump’s son-backed Thumzup Media sinks 40% on deal to acquire Dogecoin miner

Shares of micro-cap digital marketing firm Thumzup Media, backed by a son of U.S. President Trump, plunged more than 40% yesterday, August 19. The company announced plans to merge with Dogehash Technologies, a private Dogecoin and Litecoin miner. Noble Capital Markets thinks the combined entity could become a leading player in the nascent Dogecoin mining industry.

Thumzup Media shares tumbled 41% to $5 on the Nasdaq yesterday to mark their lowest point since late April. It was among the sharpest intraday drops, the Street reported. The company’s market capitalization at the close was $81.5 million.

Investors reacted negatively to the news that the company will acquire Dogecoin and Litecoin miner Dogehash. Under the agreement, Dogehash shareholders will exchange 100% of their holdings for 30.7 million shares of Thumzup stock and the company will be renamed "Dogehash Technologies Holdings, Inc." and trade on the Nasdaq under the new symbol XDOG. 

The transaction, if approved by shareholders, is expected to close in the fourth quarter, the announcement said.

Thumzup Media, which went public in 2024, initially focused on social media marketing and advertising. It operates a proprietary platform that rewards users for posting branded content on social networks. In a January letter to shareholders, the company said it aims to reshape the social media advertising ecosystem by linking businesses with real consumers who share recommendations on platforms such as Instagram, TikTok, and Elon Musk’s X. The social media advertising market is projected to surpass $200 billion in 2025. Meta alone, owner of Facebook and Instagram, has more than 8 million advertisers – most of them small businesses. This is the segment Thumzup is targeting, offering solutions designed to shorten the sales cycle.

In January, the board also authorized allocating up to 90% of the company’s liquid assets to Bitcoin. In July, it expanded that asset management strategy to include Dogecoin, Litecoin, Solana, Ripple, Ethereum, and USD Coin.

"This [Dogehash acquisition] accelerates our evolution from a digital‑marketing platform into a diversified digital‑asset infrastructure and treasury company," said explained CEO Robert Steele.

It raised $50 million in August by selling shares at $10 apiece, twice their current value. It was in the offering documents that Thumzup first named Donald Trump Jr. as a major shareholder, though it remains unclear when exactly he took a stake in the firm.

Dogehash develops blockchain infrastructure and focuses exclusively on mining Scrypt-based assets such as Dogecoin and Litecoin, according to Thumzup. The company’s flagship mining facility is powered by renewable energy, with satellite operations expected to come online soon. Dogehash differentiates itself by building infrastructure rather than simply buying digital assets. This approach ensures recurring production-based revenue, creating a sustainable pipeline of Dogecoin accumulation, points out Noble.

Dogecoin is among the most widely used cryptocurrencies, supported by fast block times, ultra-low transaction fees, and predictable issuance, according to Thumzup.

Unlike Bitcoin, which relies on halving events that reduce miner rewards every four years, Dogecoin’s issuance schedule offers steadier miner economics, Noble adds. Combined with the efficiency of Scrypt-based mining hardware, this positions Dogehash to capture stronger power-to-revenue ratios compared to many Bitcoin miners. Noble concludes that if successful, the Dogehash acquisition could position the combined company as "one of the most prominent players in the emerging Dogecoin mining industry."

"With Dogecoin already tied to meme culture and online personalities, the Trump family connection only amplifies the attention – and scrutiny," the Street writes.

The AI translation of this story was reviewed by a human editor.