Dogecoin News Today: Thumzup Stock Dives 46% After Dogecoin Mining Deal Announcement

Thumzup Media Corporation has announced a strategic shift toward the Dogecoin mining sector through a stock-based acquisition of Dogehash Technologies, a North American blockchain mining firm. Under the terms of the agreement, Dogehash shareholders will receive 30.7 million shares of Thumzup stock in exchange for 100% of their holdings. The merged entity will be renamed Dogehash Technologies Holdings, Inc. and will trade on the Nasdaq under the ticker symbol XDOG. The transaction is expected to close by the fourth quarter of 2025 and is subject to customary conditions, including shareholder approval [1].

Dogehash currently operates approximately 2,500 Scrypt-based ASIC miners in North America, with plans to increase its production capacity significantly by year-end and throughout 2026. The firm’s existing mining operations provide it with direct revenue generation through Dogecoin production, offering a scalable and sustainable model for long-term accumulation. The company also plans to leverage Dogecoin’s Layer-2 infrastructure and DeFi staking products within the DogeOS ecosystem to expand its utility [3].

Thumzup, backed in part by Donald Trump Jr., has previously raised $50 million through a secondary public offering to fund its expansion into cryptocurrency strategies, including the purchase of mining hardware and the accumulation of digital assets [1]. CEO Robert Steele emphasized the transformational nature of the acquisition, highlighting Dogehash’s world-class mining expertise, low-cost renewable energy, and access to advanced Scrypt-based hardware. The move marks a shift from Thumzup’s original digital marketing model to a diversified digital asset infrastructure and treasury company [3].

Dogehash CEO Parker Scott stated that the company’s ownership of a large-scale mining fleet provides a competitive edge as Dogecoin gains wider adoption. He noted that the platform is built with future scalability in mind, aligning with the increasing mainstream interest in decentralized technologies [1].

The strategic merger has set out several goals, including scaling Dogecoin and Litecoin mining operations, expanding renewable-powered infrastructure, and building a $250 million crypto portfolio focused on high-liquidity assets such as XRP, USDC, and DOGE. The company also plans to explore Dogecoin’s potential in real-world payment and rewards systems due to its fast transaction speeds and low fees [3].

However, the announcement has not been without market challenges. Thumzup’s stock dropped 46% from $8.28 to $4.60 shortly after the deal was announced, reflecting concerns over share dilution and execution risk [1]. Analysts suggested that the decline was partly due to uncertainty surrounding the scale of the transition and the company’s ability to execute on its ambitious roadmap.

The broader market reaction to the news has been mixed, with Dogecoin’s price declining 1.09% in the 24 hours following the announcement. Analysts noted that a further drop below $0.21 could trigger more sell-offs, while a rise above $0.22 might support a short-term rebound [1].

Thumzup’s move into Dogecoin mining reflects a broader trend of traditional companies entering the cryptocurrency space. The deal represents a significant commitment to Scrypt-based mining and underscores the growing interest in Dogecoin as both a store of value and a medium of exchange [3].

Source:

[1] Thumzup Issues 30.7M Shares in $250M Push With (https://www.fxleaders.com/news/2025/08/20/thumzup-issues-30-7m-shares-in-250m-push-with-dogehash-mining-deal/)

[2] Dogecoin Mining Gets Major Boost as Thumzup Acquires ... (https://thecryptobasic.com/2025/08/20/dogecoin-mining-gets-major-boost-as-thumzup-acquires-dogehash-in-50m-stock-deal/)

[3] Trump Jr Backed Thumzup Dogecoin Mining Deal (https://coinstats.app/news/eee2f2a428ed3c519a0e3fc47e891a8e15ce614163f184fd9ab0c5d5e8a32b66_Trump-Jr-Backed-Thumzup-Dogecoin-Mining-Deal-Stuns-Investors)