Thumzup Media Corporation has acquired 9.783 Bitcoin for the total price of $1,000,020, at an average price of $102,220 per Bitcoin. The company's management has proposed to the Board of Directors the option of holding up to 90% of its liquid assets in Bitcoin. Thumzup plans to start paying its gig-economy workers in Bitcoin in the coming weeks, ensuring compliance with all applicable laws and regulations.
Coinbase Prime is providing custodian and self-custodial wallet services for Thumzup's Bitcoin holdings, under an agreement attached to the report as Exhibit 10.1. The company is supplementing the risk factors it previously disclosed with additional ones related to the Bitcoin investment. They indicate potential risks from the volatility of Bitcoin's price, the change in the accounting treatment of Bitcoin, counterparty risks including custodian bankruptcy, and regulatory changes which could affect Bitcoin's classification, potentially impacting the company's business status and operations.
Proper names mentioned: - Thumzup Media Corporation - Coinbase Prime - U.S. Securities and Exchange Commission (SEC) - Three Arrows Capital - Celsius Network - Voyager Digital - FTX Trading - Genesis Global Capital - Signature Bank - Silvergate Bank - Prime Trust, LLC - Gemini Trust Company - Financial Accounting Standards Board (FASB) - Accounting Standards Update (ASU) 2023-08 - European Union’s Markets in Crypto Assets Regulation - Financial Services and Markets Act 2023 (FSMA 2023) - Binance Holdings Ltd. - Payward Inc. - Payward Ventures Inc. (Kraken) - Coinbase, Inc.