The board of directors of the firm Thumzup Media Corporation approves the incorporation of the company into the Bitcoin strategy to strengthen its financial reserves. The company believes that the largest Cryptocurrency has very beneficial qualities to ensure the stability of the business model in the long term.
The firm’s entry into the BTC strategy was a rumor, but the company itself recently confirmed it in a statement. In that sense, they officially join MicroStrategy, Tesla and other non-native Bitcoin companies that decide to take the step towards crypto adoption.
In the aforementioned publication, the company reveals that they will dedicate $1 million to the purchase of BTC. Among other attributes, they cite the digital currency’s ability to offer coverage against inflation, in addition to its strong security protected by its underlying network, the Blockchain. Likewise, they highlight the growing entry of large companies into the crypto environment, which guarantees strong capitalization growth.
“As demand for BTC increases and gains recognition as a leading asset class, we believe it will serve as a solid reserve asset for our treasury,” comments Thumzup CEO Robert Steele. For its part, the company’s shares on the stock market reacted with strong volatility and lost almost 12%, according to Yahoo Finance.
Thumzup expands its strategy towards Bitcoin
As expected, the news of Thumzup approving the Bitcoin strategy had a mixed reception among investors. In that sense, in the first moments of change there will be a sharp collapse that will be followed by a considerable rise in shares. The latter is due to a rearrangement of shareholders.
Basically, those stockholders who do not want exposure to the volatility of the crypto market will leave immediately, as in fact they already do. Next, those who are betting on the fusion of Bitcoin with non-native companies in the crypto environment will come in to buy as cheaply as possible. In short, boomer investors are leaving and millennials and GenZ are entering.
At the time of writing, the company’s shares are trading at $3.48 per unit. This is a notably negative performance of -46% so far this year. It should be noted that in this period the volatility of the firm’s shares is enormous, with sudden price changes.
Either way, the Bitcoin strategy is already a confirmed fact on Thumzup Media. Steele emphasizes that Bitcoin’s entry into the stock market in the form of a spot ETF became reason enough for the company.
It is expected that in 2025 Trump’s favorable policies towards cryptocurrencies will give the company a greater boost.
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