Donald Trump Jr. has acquired 350,000 shares in Thumzup Media Corp., a Los Angeles-based social media startup that is currently facing financial difficulties while accumulating Bitcoin reserves. In the last quarter, Thumzup reported a mere $151 in revenue.
This share acquisition, revealed in a filing made on Wednesday, was valued at more than $4 million based on the closing price of $12.36 per share.
According to Bloomberg, Trump Jr. made this investment following a recommendation from his adviser but does not have any further operational role within the company.
The filing appears after a $6 million private placement of convertible preferred stock was arranged by Dominari Securities. Both Trump Jr. and his brother Eric serve as advisors to the parent company of Dominari.
Image Source: Thumzup Media SEC filing
Thumzup Takes a Crypto-Centric Approach
Thumzup’s application incentivizes users by paying them for their product recommendations on Instagram. Despite generating only $151 in revenue during the first quarter, the company reported a loss of $2.2 million. The stock saw a notable increase of nearly 75% over the preceding four sessions but experienced a downturn of 17% by mid-day Wednesday.
Earlier this year, Thumzup made a significant shift by announcing it would hold the majority of its liquid assets in Bitcoin. Since then, the startup has successfully amassed over $2 million in cryptocurrency holdings. The company now aims to further diversify its portfolio by including six additional coins, funded by proceeds from its latest fundraising efforts.
This investment reinforces the Trump family’s increasing commitment to strategies involving cryptocurrency reserves. Various Trump-affiliated ventures have adopted Bitcoin storage solutions, including Dominari’s ETF investments and roles in the Metaplanet advisory board, as well as Trump Media & Technology Group’s $2.3 billion deployment in Bitcoin.
Trump’s Transformative Stance on Cryptocurrency
Donald Trump has transitioned from a position of skepticism towards cryptocurrency to one of advocacy, pushing for policies to establish the U.S. as the “crypto capital of the world.”
His business endeavors—including World Liberty Financial, the $TRUMP and $MELANIA meme coins, and various NFT projects—are reported to have generated close to $1 billion in revenue.
These interconnected ventures have attracted scrutiny regarding potential conflicts of interest, governance issues, and associations with contentious investors. However, they appear to thrive amid a favorable regulatory environment and a supportive stance from the Trump administration toward cryptocurrency.
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