Trump Jr. Buys $4 Million Stake in Struggling Thumzup Media

Donald Trump Jr. has acquired a significant stake in Thumzup Media Corp., a struggling social media startup based in Los Angeles. The investment, disclosed in a recent filing, amounts to 350,000 shares, valued at over $4 million at the previous close of $12.36 per share. This move comes as Thumzup, which offers an app that pays users for product recommendations on Instagram, has been facing financial challenges, reporting a $2.2 million loss on just $151 in revenue in the first quarter of this year.

Thumzup made a strategic pivot in January by deciding to hold most of its liquid assets in Bitcoin. Since then, the company has accumulated over $2 million worth of the cryptocurrency. The latest investment by Trump Jr. follows a $6 million private placement of convertible preferred stock arranged by Dominari Securities, a firm for which both Trump Jr. and his brother Eric serve as advisors. This investment deepens the Trump family's involvement in crypto treasury strategies, as Trump-linked entities have embraced Bitcoin hoarding across various ventures.

Trump Jr.'s investment in Thumzup is part of a broader trend within the Trump family, which has increasingly embraced cryptocurrency. The family's ventures, including Dominari’s ETF investments, Metaplanet advisory board roles, and Trump Media & Technology Group’s $2.3 billion Bitcoin deployment, reflect a growing interest in digital assets. This shift is notable given Donald Trump's previous skepticism towards cryptocurrency, which has evolved into a more supportive stance, advocating for policies to make the US the “crypto capital of the world.”

Despite the financial struggles of Thumzup, the company's decision to diversify its cryptocurrency holdings by adding six more coins using funds raised in its latest round indicates a strategic move to mitigate risks and capitalize on the growing interest in digital assets. This diversification strategy aligns with the broader trend of companies and investors seeking to hedge against market volatility by expanding their cryptocurrency portfolios. The Trump family's involvement in Thumzup and other crypto-related ventures underscores the growing influence of digital assets in the financial landscape, as well as the potential for significant returns in this rapidly evolving sector.