Donald Trump Jr. invested over $4 million in 350,000 shares of Thumzup Media, a company that has focused on accumulating Bitcoin.
Trump's Investment in Thumzup Media
Donald Trump Jr. purchased 350,000 shares of Thumzup Media, a struggling Los Angeles startup. The investment was made on the advice of Dominari Securities, where he and his brother Eric serve as advisors. The company has halted cash accumulation and started acquiring Bitcoin since its conversion in January.
Financial Struggles and Crypto Strategy
Thumzup’s core business, an Instagram-based influencer-recommendation platform, reportedly generated just $151 in Q1 revenue and lost $2.2 million. The company now holds over $2 million worth of Bitcoin and intends to diversify into six other cryptocurrencies using capital from a recent funding round.
Future of Corporate Bitcoin Treasuries
The strategy of using Bitcoin as a treasury asset is gaining popularity among companies despite the associated risks of cryptocurrency volatility. Small firms like Thumzup Media are adopting this approach, raising questions about financial sustainability and potential risks to shareholders.
Donald Trump Jr.'s investment in Thumzup Media highlights a growing trend of using cryptocurrencies in business, revealing numerous risks associated with this strategy.
