Donald Trump Jr. has taken a $4.3 million leap into the crypto economy through a struggling social media startup called Thumzup Media Corp, based in Los Angeles, according to Bloomberg.
On Wednesday, the company disclosed in a public filing that Donald picked up 350,000 shares, making him one of the largest shareholders. The deal was made based on advice from his investment manager, and Donald will not be playing any operational role at the firm.
This new stake follows a $6 million private placement of convertible preferred stock organized last week by Dominari Securities, an investment bank where both Donald and his brother Eric Trump serve as advisers to the parent company.
The stock closed at $12.36 per share on Tuesday but had dropped 17% by midday Wednesday after a recent run-up of 75% over four sessions as of press time. Despite the volatility, Donny went ahead with the purchase.
Company loses money, stacks Bitcoin, and adds six more coins
Thumzup runs an app that pays users to post brand promotions on Instagram, but it isn’t bringing in much cash. The company brought in just $151 in revenue during the first quarter of the year, while spending $2.2 million.
As losses grow, the company’s response has been to stockpile crypto. In January, Thumzup said it would park most of its liquid assets in Bitcoin , and by now it has more than $2 million worth. Today, the firm said it’s expanding that strategy to include six additional coins, using proceeds from the private placement to do so.
None of the companies or individuals involved gave public comments. A spokesperson for the Trump Organization, where Donny serves as Executive Vice President, didn’t respond to messages. Thumzup and Dominari both declined to comment as well.
Meanwhile, more Trump-aligned businesses are heading in the same direction. Dominari began investing in a Bitcoin ETF in February.
In March, Eric joined the board of advisers at Metaplanet, a former hotel company in Japan that now focuses on buying up Bitcoin. And the Trump Media & Technology Group, which runs Truth Social, raised $2.3 billion for Bitcoin investments.
President Donald Trump, now back in the White House, has publicly vowed to make the United States the “crypto capital of the world.” His wealth, estimated at $6.5 billion by the Bloomberg Billionaires Index, has been boosted by the family’s crypto-heavy ventures like World Liberty Financial and the Trump memecoin.
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