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Thumzup Media Corporation, a social media marketing company based in Los Angeles, announced its entry into the crypto space with plans to purchase up to $1 million in Bitcoin.
The company, which helps brands pay users to promote them on platforms like Venmo and PayPal, aims to diversify its treasury holdings with this move.
CEO Robert Steele explained in a company release that Bitcoin’s rising institutional acceptance and the introduction of Bitcoin (BTC) exchange-traded funds have solidified its role as a viable financial asset.
The company believes that Bitcoin’s finite supply and resistance to inflation enhance its appeal as a store of value. Thumzup views Bitcoin as a strategic addition to its treasury, aligning with a broader trend of companies using digital assets as reserve assets.
Bitcoin as a reserve
Thumzup’s move is part of a growing trend among companies and traditional financial systems seeking alternatives to traditional cash reserves.
Earlier this week, the Pennsylvania Bitcoin Strategic Reserve Act, led by Representative Mike Cabell, was proposed by the U.S. state of Pennsylvania’s legislature. The act would allow up to 10% of state funds to be invested in Bitcoin as a hedge against inflation.
American Senator Cynthia Lummis has also expressed optimism that plans to create a strategic Bitcoin reserve will be implemented soon after Donald Trump‘s inauguration.
By integrating Bitcoin into its reserves, Thumzup aligns itself with a digital future while potentially benefiting from Bitcoin’s long-term value proposition.