Latest news with #TrumpMedia&TechnologyGroup
Yahoo
3 days ago
- Business
- Yahoo
Trump Media Wants to List a Bitcoin ETF. Should You Buy DJT Stock Now?
Cryptocurrency stocks have been gaining serious traction ever since regulators opened the door to spot Bitcoin (BTCUSD) exchange-traded funds (ETF). Major players like BlackRock (BLK) and Fidelity have already made waves in this space, but now, a surprising new entrant is making headlines. Trump Media & Technology Group (DJT), best known for its social media platform Truth Social, is pivoting toward digital finance with a newly proposed Bitcoin and Ethereum (ETHUSD) ETF. Officially titled the Truth Social Bitcoin and Ethereum ETF, the fund plans to allocate 75% of its assets to Bitcoin and 25% to Ethereum, with tapped as custodian and execution agent. With Yorkville America Digital as the sponsor, Trump Media is positioning itself as a bold new player in the booming crypto ETF space. Trump Is Giving Tesla's Robotaxis a Leg Up Ahead of June 22. Should You Buy TSLA Stock Now? Dear Nvidia Stock Fans, Mark Your Calendars for July 16 The Trump Family Is Betting Big on Mobile Phones. Should Apple Stock Investors Be Worried? Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! For investors intrigued by DJT's leap into fintech and crypto, this move could either mark a savvy expansion into a red-hot market or a risky detour from its media roots. Here's what you need to know before betting on DJT stock. Trump Media & Technology Group is best known as the operator of Truth Social, a social media platform launched by President Donald Trump in 2021, along with a nascent video streaming service, Truth+, and a newly announced fintech brand, The company's stated mission is to provide an 'America First' online ecosystem free from perceived Big Tech censorship, monetizing via subscriptions, advertising, and financial services. Valued at around $5 billion by market cap, DJT has been one of the worst-performing stocks in 2025, with shares down more than 45% year to date. Moreover, the valuation is at sky-high levels. The company's trailing price-sales ratio stands at roughly 1,190x versus a sector median of 1.22x, implying an extraordinary premium over its peers. On May 27, Trump Media & Technology Group announced a $2.5 billion private placement aimed at building a Bitcoin treasury. The private placement includes about $1.5 billion of new common stock issued at market price and $1 billion of zero-coupon convertible notes convertible at a 35% premium. All proceeds will be used to build a Bitcoin treasury. After the raise, CEO Devin Nunes declared that Trump Media will hold cryptocurrency as a core asset, calling Bitcoin an 'apex instrument of financial freedom.' Trump Media & Technology Group currently operates a limited core business, with the majority of its revenue derived from digital advertising on its social media platform. While the company is in the process of diversifying its offerings, launching subscription-based services such as Truth+ and exploring fintech products including ETFs and cryptocurrency initiatives, these efforts remain in the early stages and have yet to generate meaningful revenue. For the first quarter of 2025, DJT reported revenue of approximately $8.8 million. The company remains unprofitable, posting a net loss of $31.7 million in the quarter. Despite the weak top-line performance, DJT reported a strong liquidity position, ending Q1 with approximately $759 million in cash, cash equivalents, and short-term investments. Operating cash outflows were relatively modest at $9.7 million, primarily related to legal expenses and SPAC-related costs. To date, nearly all of the company's funding has come from its SPAC merger and related stock issuances, rather than from its operating activities. As its core services have not yet produced material cash flow, DJT is expected to rely heavily on its existing cash reserves and potential future financing to support growth initiatives, including potential acquisitions and expansion into financial product markets. Trump Media's 2025 strategy pivoting heavily into crypto via an ETF filing and a massive Bitcoin treasury represents a bold, high-risk direction. The company has virtually no cash-generating core business, so management is effectively betting its future on the cryptocurrency market and on the willingness of investors to continuously fund it. Such a plan may appeal to speculative, crypto-friendly stakeholders, and it aligns with Trump's political brand. However, from a traditional business and financial standpoint, it is speculative. The reliance on fresh capital to finance crypto purchases (instead of internal cash flow) adds dilution and leverage risk. The volatility and regulatory uncertainties around Bitcoin and Ethereum pose significant downsides. Investors should view Trump Media's crypto gambit as a high-stakes experiment. On the date of publication, Nauman Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
A Truth Social Bitcoin ETF Could Be Coming This Year. Here's What That Might Mean for Trump Media Stock.
Trump Media recently filed a registration statement to launch a new Bitcoin ETF. It also announced plans for a fund that invests in both Bitcoin and Ethereum. Trump Media's business is broadening in scope, but its financials remain underwhelming. 10 stocks we like better than Trump Media & Technology Group › One way companies can try and drum up interest in their businesses is by getting involved with cryptocurrencies, especially given how hot Bitcoin (CRYPTO: BTC) has been this year. Holding Bitcoin or simply being bullish on the digital asset can attract growth investors who think alike. Trump Media and Technology Group (NASDAQ: DJT) is a great example of a company that looks to be trying to benefit from crypto's growing popularity. This month it made multiple announcements related to launching exchange-traded funds (ETFs) that will invest in popular digital currencies. And that's on top of earlier plans to stockpile Bitcoin. What does this all mean for investors, and can this make Trump Media a more attractive buy, as it potentially benefits from Bitcoin's rising value? Or will it simply add more risk and volatility? On June 5, Trump Media announced a filing with the Securities and Exchange Commission (SEC) to launch an ETF that will hold Bitcoin. Called the Truth Social Bitcoin ETF, it is currently pending approval, with the expectation that it will launch sometime this year. And on Monday, it announced plans for a new fund which will invest in both Bitcoin and Ethereum. It will be called the Truth Social Bitcoin & Ethereum ETF. This comes after the company announced just last month its intent to raise $2.4 billion as part of a plan to become one of the largest corporate holders of Bitcoin. Holding Bitcoin and crypto as a whole appears to be part of a broader long-term strategy for Trump Media, potentially both as a way to grow and diversify its operations and also to attract a wider range of investors. The launch of multiple crypto-focused ETFs could generate a lot of interest in Trump Media stock, possibly making it more of a compelling option for crypto investors. However, with multiple crypto ETFs to choose from, it's questionable how much interest the funds may attract from investors, and a lot will depend on how competitive the fees are. Unfortunately, this isn't likely going to result in a huge improvement in the company's financials. High fees would be necessary to generate strong margins, and that would likely end up dissuading investors in the process. The biggest problem for Trump Media is that while it has been expanding into different areas, including streaming and financial services, this remains a highly unprofitable, cash-burning business. In the trailing 12 months, Trump Media incurred losses totaling $105 million on revenue of just $3.7 million. This crypto strategy could make Trump Media stock a more volatile and speculative investment overall. It has the potential to rise along with the general bullishness surrounding Bitcoin and the crypto markets as a whole, but based on its own fundamentals, it's not likely going to attract many growth investors. Trump Media is clearly trying to get deeper into crypto, and it may be little wonder why, given how well Bitcoin has performed this year, reaching record levels. But simply having crypto ETFs and stockpiling Bitcoin doesn't mean that will lead to sustainable, long-term returns for investors. Unless the company's financials show that there is a strong underlying business here to invest in, investors should tread very carefully with this stock, as it comes with high risk. This isn't a stock that's going to be suitable for the vast majority of investors as its poor financials suggest frequent stock offerings could be inevitable, and a heavy exposure to crypto may add to its volatility in the long run. Before you buy stock in Trump Media & Technology Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Trump Media & Technology Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,821!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $886,880!* Now, it's worth noting Stock Advisor's total average return is 791% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy. A Truth Social Bitcoin ETF Could Be Coming This Year. Here's What That Might Mean for Trump Media Stock. was originally published by The Motley Fool Sign in to access your portfolio
Time of India
4 days ago
- Business
- Time of India
Explainer: What are bitcoin treasury strategies, the latest trend in the public markets?
Here is what you need to know about the trend: WHY ARE COMPANIES DOING THIS? Live Events WHICH COMPANIES ARE DOING THIS? WHY NOW? WHAT ARE THE RISKS? (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Certain public companies, including one founded by President Donald Trump, have been going on a cryptocurrency buying spree , capitalizing on higher token prices and a softening regulatory environment to load up on the attention-grabbing publicly-listed companies not primarily engaged in digital assets have adopted what are known as bitcoin treasury strategies , in which firms allocate a portion of their cash and reserves toward the world's largest cryptocurrency, according to a report from Standard of those companies are seeking to replicate the success of Strategy, formerly known as MicroStrategy, a software company that began accumulating bitcoin in 2020 and now holds more than $63 billion worth. Its stock is up more than 3,000% since 2020 as the price of bitcoin has skyrocketed, hitting fresh all-time highs above $110,000 this copycats have doubled their holdings in bitcoin in just the last two months to collectively hold just under 100,000 bitcoin, Standard Chartered said. Those firms include Trump Media & Technology Group, which raised $2.5 billion last month to invest in investors can readily buy bitcoin directly or through an exchange-traded fund, investors typically cannot get the same kind of leverage a public company might be able to get through the convertible debt markets to buy bitcoin. Companies like Strategy trade at a premium to their bitcoin holdings because investors believe that those firms can utilize their access to credit markets to purchase even more and Trump Media & Technology Group did not immediately respond to requests for Strategy and Trump Media & Technology Group, a joint venture announced in April between SoftBank, stablecoin issuer Tether, and Cantor Fitzgerald - previously helmed by U.S. Commerce Secretary Howard Lutnick - caught investors' attention. The group is launching a $3.6-billion venture called Twenty One with the goal of acquiring a Toronto-based solar energy company, announced this month it would implement a bitcoin treasury strategy, saying it would expose the company "to a new category of tech-savvy investors." SolarBank has not disclosed how much bitcoin it plans to buy, only saying that the allocation strategy will be determined by management."Traditionally, people invest in utilities as (an) afterthought. It's a very low return. It's a stable return," said SolarBank CEO Richard Lu. "So, how do we bridge the excitement of the new world and a classic industry? We feel that the crypto part of that is a bridge we need to cross."Upexi, a consumer products company, recently launched a treasury for Solana, another top cryptocurrency."It is a great way for a company to really bring attention to itself and grow," said Brian Rudick, the firm's chief strategy officer."If a company has a fiduciary duty to do what's best for shareholders, and if you're going to raise funds and invest it in the operating business, or if you can invest in funds and put it into a digital asset treasury that the market is rewarding companies that do so, you should do the latter," Rudick trend comes as Trump has sought to overhaul U.S. cryptocurrency policy after courting cash from the industry on the campaign trail. He signed an executive order in March to establish a strategic bitcoin reserve and has hosted industry leaders at the White House. Those moves have boosted the price of bitcoin and other cryptocurrencies."It may be that some firms are trying to get political attention. This is clearly something President Trump has signaled his interest in," said Chester Spatt, a finance professor at Carnegie Mellon stark shift in policy under Trump "is a serious tailwind for more and more institutions to get into the space," said Roshan Robert, CEO of crypto exchange OKX. "How institutions are looking at building out treasury applications is just a part of that broader picture."It is unclear if the various crypto treasury strategies will ultimately be successful, particularly if firms are buying in now as prices flirt with record highs in a sector that is no stranger to Schwab, in a report last month, noted that if a company has significant crypto holdings that suddenly collapse in value, the firm could experience a liquidity crisis. Standard Chartered estimated that if bitcoin were to fall back below $90,000 it would put half of companies' bitcoin treasuries underwater."As always, there will be some really, really big winners and some really big losers whenever there's a mania like this," said Ravi Doshi, the global co-head of markets at crypto platform FalconX.
Yahoo
4 days ago
- Business
- Yahoo
Trump Media ETF to Hold Both Bitcoin and Ether, Company Says
An exchange-traded fund planned by Trump Media & Technology Group (DJT) will combine Bitcoin and Ether in a single tradable asset, the company said Monday. The Truth Social parent company, founded by President Donald Trump, earlier today said it intended to launch an ETF that would directly hold both Ether and Bitcoin, with a quarter of its assets in the former and the rest in the latter. The launch is planned for "later this year," the company said. The company earlier this month said it planned to offer a Bitcoin-only ETF, and in late May said it was raising money to acquire Bitcoin. Trump Media earlier this year announced plans to offer crypto products. in March said it would partner with the company to offer the ETFs. Shares of Trump Media & Technology Group lost about 4% Monday to close just under $19, bringing their pullback to more than 40% in 2025. Bitcoin was recently trading a bit below $109,000, while Ether was changing hands above $2,600. Read the original article on Investopedia
Yahoo
5 days ago
- Business
- Yahoo
4 Simple Ways Trump's $2.5B Bitcoin Deal Could Impact Everyone's Wallet
President Donald Trump's social media company, Trump Media & Technology Group, recently entered into deals with about 50 institutional investors that will raise $2.5 billion to invest in bitcoin. $1.5 billion will come from selling approximately 58 million shares and $1 billion from selling bonds that can be converted into shares later. Read Next: Check Out: The company plans to use the funds to create a bitcoin treasury, a move that could impact your wallet even if you've never owned a single cryptocurrency. For decades, U.S. Treasury bonds were considered safe investments, but things are starting to shift, probably due to the rising yields and economic uncertainty. More institutional investors are turning to bitcoin as a way to protect themselves against market volatility. Trending Now: 'Trump Media and Technology Group (DJT) is not the first to turn its attention to the cryptocurrency market. In March, Germany's Deutsche Börse announced it would begin offering cryptocurrency custody and settlement services for institutional clients,' said Alena Afanaseva, CEO and founder of BeInCrypto. 'This week, June 9, 2025, Anemoi International Ltd. ($AMOI.L), a UK-based company, has become the first to add bitcoin to its treasury, investing approximately 30% of its £900k ($1.2 million) cash reserves as of Dec. 31, 2024.' This shift legitimizes bitcoin as a treasury asset and makes it more likely to show up in mainstream portfolios, including retirement accounts. Massive deals like this extend beyond the cryptocurrency market. They influence how investors, banks and businesses make decisions. 'Chances are that the deal could lead to economic uncertainties, influencing interest rates, inflation and job growth, which would ultimately impact the purchasing power and financial stability of Americans,' said Aaron Razon, personal finance expert at Couponsnake. So even if you're not invested in crypto or DJT stock, you'll likely feel the impact in your day-to-day finances. The increasing adoption of cryptocurrency by companies and institutions could mean new payment options and earning opportunities will become available. 'As crypto becomes integrated into mainstream banking and fintech platforms, even those who aren't actively investing may feel its influence, whether through new payment options, financial products, or cultural narratives,' Afanaseva said. For years, crypto was seen as a high-risk, speculative asset. But now publicly traded companies, like Trump Media and Strategy, are adding bitcoin to their balance sheets as a way to diversify their revenue, something which those new to crypto may want to pay attention to. 'Trump Media's $2.5 billion pivot toward bitcoin introduces a new layer of volatility to its stock (DJT),' said Dan Buckley, chief analyst at 'It may not directly impact the wallets of those who don't own the stock or crypto, but high-profile firms embracing crypto may slowly increase mainstream acceptance of cryptocurrency as a corporate treasury asset.' Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates 5 Types of Cars Retirees Should Stay Away From Buying This article originally appeared on 4 Simple Ways Trump's $2.5B Bitcoin Deal Could Impact Everyone's Wallet
