Thumzup approves $1m of Bitcoin as treasury reserve asset

Thumzup Media Corporation, a Los Angeles-based social media marketing company, announced it is entering the crypto space with plans to purchase up to $1 million in Bitcoin.

The company, which helps brands pay users to promote on platforms such as Venmo and PayPal, aims to diversify its treasury assets with this move.

CEO Robert Steele explained in a company statement that increasing institutional adoption of Bitcoin and the introduction of Bitcoin (BTC) exchange-traded funds have solidified Bitcoin’s role as a viable financial asset.

The company believes that Bitcoin’s limited supply and resistance to inflation increase its appeal as a store of value. Thumzup sees Bitcoin as a strategic addition to its treasury, aligning with a broader trend of companies using digital assets as reserve assets.

Bitcoin as 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 US state legislature of Pennsylvania. The law will allow up to 10% of government funds to be invested in Bitcoin to hedge against inflation.

American Senator Cynthia Lummis also expressed optimism that plans to create a strategic Bitcoin reserve will be implemented shortly after Donald Trump takes office.

By integrating Bitcoin into its reserves, Thumzup is preparing itself for a digital future while potentially benefiting from Bitcoin’s long-term value proposition.