Why did Thumzup Media Shares Skyrocket in Premarket Trading? It’s Crypto Related

Thumzup Media Corporation (NASDAQ: TZUP) shares surged over 20% in premarket trading on Tuesday, July 1st, 2025, jumping to $8.45 following the company’s announcement of a $6.5 million registered direct offering.

The social media marketing company has positioned itself as a digital asset accumulator with an aggressive Bitcoin treasury strategy, making it one of the most crypto-focused public companies in its sector.

This latest funding round is specifically earmarked for general corporate purposes and exploring additional cryptocurrency acquisitions, further solidifying Thumzup’s commitment to digital asset accumulation alongside its core advertising technology business.

Thumzup Media to Raises Capital for Crypto

Thumzup Media announced a definitive agreement with investors to purchase up to 1,083,333 shares of common stock at $6.00 per share, generating approximately $6.5 million in gross proceeds before fees. The offering includes 179,500 shares of Series C Convertible Preferred Stock, which are non-voting shares with beneficial ownership limitations of 4.99% and 9.99%.

Dominari Securities LLC is serving as the sole placement agent for this registered direct offering, which is being conducted through an effective shelf registration statement declared effective by the SEC on May 30, 2025.

The market’s enthusiastic response to this funding announcement reflects investor confidence in Thumzup’s dual strategy of expanding its advertising technology platform while simultaneously building a significant cryptocurrency treasury.

The company explicitly stated its intention to use the net proceeds for general corporate purposes and to explore accumulating additional cryptocurrencies beyond Bitcoin (BTC). This crypto-focused approach has differentiated Thumzup from traditional advertising technology companies and attracted investors seeking exposure to digital assets through publicly traded equities.

The timing of this capital raise aligns with broader institutional adoption of Bitcoin and comes as the company continues to execute on its previously announced plans to raise up to $500 million through its expanded shelf registration. This flexibility allows Thumzup to capitalize on favorable market conditions for both equity and cryptocurrency markets while maintaining the resources needed to grow its core social media advertising business.

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Thumzup’s Aggressive Bitcoin Treasury Strategy Translates to Stock Gains

Thumzup has implemented one of the most aggressive Bitcoin treasury strategies among publicly traded companies, with board authorization to allocate up to 90% of its liquid assets to Bitcoin.

As of May 2025, the company held approximately 19.106 BTC valued at around $1.8 million, representing a significant portion of its treasury reserves. This strategy positions Thumzup as a hybrid entity that combines traditional advertising technology operations with substantial cryptocurrency exposure, potentially creating a Bitcoin proxy investment opportunity for traditional equity investors.

The company’s Bitcoin accumulation strategy began in late 2024 when the board first approved Bitcoin as a treasury reserve asset, initially authorizing a $1 million purchase.

Since then, Thumzup has consistently increased its cryptocurrency holdings and expanded its capital raising capabilities to support further digital asset acquisitions. The company’s leadership has expressed strong conviction in Bitcoin’s long-term value proposition as a hedge against inflation and macroeconomic uncertainty, following the playbook established by companies like MicroStrategy.

This transformation from a pure-play advertising technology company to a digital asset accumulator has fundamentally altered Thumzup’s risk-return profile and market positioning. The company now offers investors exposure to both the growing social media advertising market through its Thumzup platform, which connects advertisers with content creators, and the volatile but potentially high-reward cryptocurrency market through its substantial Bitcoin holdings. This dual exposure strategy has created a unique investment proposition that appeals to both traditional growth investors and cryptocurrency enthusiasts seeking publicly traded digital asset exposure.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.