Trump Jr. Sells Thumzup Stake for Crypto Expansion

Donald Trump Jr. was identified as a prominent selling shareholder in Thumzup, a social media company based in Los Angeles that has recently raised $50 million to venture into crypto mining and expand its multi-asset treasury, which includes currencies like Dogecoin, Ether, Litecoin, Solana, and XRP. According to a filing with the U.S. Securities and Exchange Commission, he held about 350,000 TZUP shares before the company’s secondary offering, which closed this week and is projected to raise around $46.5 million after fees. Thumzup operates an adtech application allowing users to earn money from their social media contributions and is part of a growing trend of digital asset treasuries (DATs) that acquire tokens through funds obtained from public or private securities sales. The company’s offering followed a shelf registration initiated on May 2, with SEC approval granted on May 30. Trump’s initial purchase of Thumzup’s stock remains unclear, although he was listed as one of 11 selling shareholders in a July disclosure seeking to offload 3,250,000 TZUP shares. Among other stakeholders in the offering were several venture capital firms, including fund manager Valkyrie and American Ventures, alongside various private individuals. Trump Jr. emerged as the leading individual seller among these shareholders. In a notable shift, Thumzup plans to venture into mining, aiming to engage with leading mining technology providers to enhance its operational capabilities. CEO Robert Steele remarked, "This is a transformative step in Thumzup's evolution. With a strengthened capital base and a clear strategic vision, we are expanding our reach into high-growth areas of the digital economy. Our goal is to create enduring, revenue-generating assets while establishing the company as a leader in digital asset mining and treasury management." The Trump family has become increasingly involved in the crypto sector, with investments in multiple initiatives, including the DeFi project World Liberty Financial and the American Bitcoin mining enterprise. Recent estimates suggest the family has amassed $620 million from these ventures. Eric Trump serves as chief strategy officer of American Bitcoin, a Hut 8 subsidiary aiming to go public through a merger, while Donald Jr. holds a significant stake. Eric Trump has publicly linked their interest in crypto to challenges faced with being debanked and censored. Disclaimer: The Block is an independent media outlet providing news, research, and data. As of November 2023, Foresight Ventures is a major investor in The Block, which maintains its independent operations. This article is for informational purposes and should not be considered legal, investment, or financial advice.