Thumzup Raises $6M in Preferred Stock Offering, Eyes Crypto and Growth
Thumzup Media Corporation, the ad tech startup turning everyday social media users into paid brand ambassadors, just locked in $6.04 million in fresh capital—and it’s not just for building out its ad platform. The company also has its eye on crypto.
In a move that blends traditional capital markets with the digital frontier, Thumzup (Nasdaq: TZUP) completed a registered direct offering of 108,333 shares of Series C Convertible Preferred Stock. Each share is convertible into 10 shares of common stock, giving investors a path to 1,083,333 common shares. The offering price? $60 per preferred share, effectively pegging the common shares at $6 apiece.
There won’t be a trading market for the Series C stock, and the conversion comes with guardrails—specifically, beneficial ownership limits of 4.99% or 9.99%, depending on the holder’s election.
A Funding Round with Dual Intentions
According to Thumzup, the proceeds will support “general corporate purposes”—a classic catch-all—but more specifically, the company is looking to accumulate cryptocurrency assets as part of its growth strategy.
It’s an interesting juxtaposition for a company whose core product is a social advertising app that pays users cash via PayPal and other digital methods for posting brand promos on their own social channels. In effect, Thumzup is creating a grassroots ad network powered by the average user.
With its programmatic advertiser dashboard, brands can customize campaigns, and creators can cash in through the Thumzup app, creating a bridge between social engagement and paid influence—without big-name influencers.
A Bold Bet on Crypto in a Volatile Market
While the app-based ad play is compelling, Thumzup’s nod to accumulating cryptocurrency introduces a more speculative edge. The company isn’t being specific about which digital assets it plans to acquire or how it intends to integrate them into its ecosystem.
But as ad tech companies increasingly explore blockchain, Web3 integrations, and decentralized identity solutions, it’s not a completely out-of-left-field move. Still, betting on crypto amid tightening regulations and a turbulent market could either be visionary—or risky.
Placement and Regulatory Notes
The offering was managed by Dominari Securities LLC and conducted under an SEC-approved shelf registration statement filed earlier this year. The final prospectus supplement has been filed and is available through the SEC’s website.
No voting rights are attached to the Series C shares, reinforcing their role as financial instruments rather than governance tools.
Thumzup is part of a new breed of ad tech companies trying to decentralize and democratize digital advertising by leveraging micro-influencers—or just everyday people with a phone and a social media account.
With this capital infusion, the company is betting big on growth—both within the ad space and beyond it. Whether that includes crypto integrations into its platform or separate asset holdings remains to be seen.
But in a market hungry for innovative ad tech plays, Thumzup’s blend of social-first monetization and digital asset ambition positions it as a company to watch—even if it’s still early innings.
