Thumzup Media Launches $10M Share Buyback, Builds Bitcoin And Dogecoin Treasury

What Happened

Thumzup Media launched a $10 million share buyback after completing a $1 million repurchase plan.

The announcement comes on the heels of the company completing a $1 million repurchase plan, which saw 212,432 shares bought back at an average price of $4.71.

Thumzup also confirmed it is awaiting shareholder approval to acquire DogeHash Technologies, a Dogecoin mining firm with 2,500 mining rigs operational and another 1,000 units on the way.

The crypto treasury strategy that gained traction among small-cap firms in 2024 is beginning to unravel, with several companies now launching debt-funded share buybacks to counter plunging stock prices.

At least seven firms, including those in gaming, biotech, and EV sectors, are now trading below the value of their crypto holdings, raising red flags among investors and analysts.

The company recently secured $80 million in debt to finance a $250 million buyback. Meanwhile, Empery Digital (formerly Volcon) holds $476 million in BTC but has a market cap of just $378 million—prompting it to expand its debt facility for similar repurchases. Analysts argue these moves are more about propping up stock prices than investing in digital assets.

A recent report from K33 Research reveals that 25% of public companies holding Bitcoin now trade at market values below the worth of their BTC holdings, highlighting a sharp drop in investor confidence.

Market Context

Thumzup Media (Nasdaq: TZUP), a digital advertising company with a growing crypto footprint, has unveiled a new $10 million share buyback program, extending its capital return strategy through December 31, 2026.

Thumzup Shares Jump 5.7% as Market Cap Hits $78M

TZUP shares climbed 5.7% to $4.81 following the news, giving the company a market cap of roughly $78 million.

The growing discount, known as the NAV gap, is limiting firms’ ability to raise capital, particularly hurting smaller players like NAKA, which has seen a 96% collapse in its market value.

Why It Matters

Alongside its stock buyback, Thumzup continues to build a crypto treasury. The company now holds 19.106 Bitcoins and around 7.5 million Dogecoins, further signaling its pivot toward blockchain-driven financial management.

Critics say the tactic signals desperation and a departure from the original idea that crypto appreciation alone would drive shareholder value.

Details

Key Takeaways:

The company holds over 19 BTC and 7.5 million DOGE, with approval to build a $250M crypto treasury.

A potential Dogecoin mining acquisition and Donald Trump Jr.’s stake add momentum to its Web3 shift.

“Our decision to implement a $10 million share repurchase program reflects confidence in Thumzup’s long-term strategy and our commitment to delivering value to shareholders,” said CEO Robert Steele.

Earlier this year, Thumzup’s board approved a framework allowing up to $250 million in crypto holdings, with assets potentially including Bitcoin, Dogecoin, Litecoin, Solana, XRP, Ethereum, and USD Coin.

The acquisition, if finalized, would expand the company’s exposure to crypto mining and strengthen its digital asset infrastructure.

Notably, Donald Trump Jr. holds a 350,000-share stake in the company, revealed in summer filings, adding a layer of public attention to Thumzup’s crypto-linked strategy.

With the share buyback and growing digital asset reserves, the company appears to be positioning itself at the intersection of advertising and Web3 finance.

Crypto Treasury Craze Unravels as Firms Turn to Debt-Fueled Buybacks

Notable cases include ETHZilla (formerly 180 Life Sciences), which saw its stock drop 76% despite accumulating ether and rebranding.

Across the board, companies like SharpLink Gaming, Ton Strategy, and CEA Industries are seeing their crypto treasury strategies backfire.