Latest news with #TrumpMediaandTechnologyGroup
Yahoo
4 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. 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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
Yahoo
6 days ago
- Business
- Yahoo
Donald Trump's Truth Social Files for Dual Bitcoin and Ether ETF
Trump Media and Technology Group (DJT) has filed to list a Truth Social Bitcoin and Ethereum exchange traded fund (ETF) on Monday. The ETF will hold bitcoin BTC and ether ETH directly with 75% of capital being allocated to bitcoin and the remaining 25% to ether, according to a filing with the Securities and Exchange Commission (SEC). Singapore-based exchange will act as the ETF's custodian as well as taking and liquidity provider. Trump Media and Technology Group signaled its intent of issuing an ETF earlier this month as it made a standalone registration for a spot bitcoin ETF. The inclusion of ether is in-keeping with the Trump family's crypto activity; World Liberty Financial, the DeFi project backed by the family, holds 96% of it assets on the Ethereum blockchain, Arkham data shows. If approved the fund would join a long list of crypto ETFs including those managed by BlackRock, Grayscale, Fidelity and Franklin Templeton. Bitcoin ETFs alone have $131 billion in assets under 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
The Star
13-06-2025
- Business
- The Star
Trump Media's registration for bitcoin treasury deal becomes effective
FILE PHOTO: Representations of cryptocurrency Bitcoin are seen in this illustration taken November 25, 2024. REUTERS/Dado Ruvic/Illustration/File Photo (Reuters) -Trump Media and Technology Group said on Friday that the U.S. Securities and Exchange Commission has declared effective the registration for its bitcoin treasury deal. The company said it raised about $2.3 billion through a mix of debt and equity agreements with participation from around 50 investors. It said in May that the bitcoin will be held on Trump Media's balance sheet alongside existing cash and short-term investments totaling $759 million as of the end of the first quarter. Several companies, including video game retailer GameStop and Strategy, are adding bitcoin and other cryptocurrencies to their balance sheets to capitalize on rising token prices as the Trump administration embraces digital assets. (Reporting by Harshita Mary Varghese in Bengaluru; Editing by Alan Barona)
Forbes
12-06-2025
- Business
- Forbes
Real Estate No Longer Makes Up A Majority Of Donald Trump's Fortune
Donald Trump was a real estate developer, then a TV character, then a social-media mogul. Now, he's a crypto kingpin. A majority of his fortune, an estimated $3.3 billion of his total $5.5 billion, lies in the buzzy industry, which the president has tapped for cash and worked to promote. The latest shift occurred last month, when the Trump Media and Technology Group announced a change in its business strategy. The venture started as a social-media effort, releasing Truth Social to give Trump a platform after Twitter and Facebook booted him. Truth Social never turned into much of a business, generating about $4 million of revenue and more than $100 million of losses a year. Investors flocked to the Trump Media and Technology Group nonetheless, valuing the publicly traded firm at $5.7 billion. With little to back up that valuation, the company announced a plan last month to bolster its balance sheet by accumulating Bitcoin. About 50 institutional investors handed over more than $2 billion in a stock-and-debt deal to allow Trump's business to purchase crypto. Given that the Truth Social business is so small, the new plan immediately transformed Trump's company from a social-media play to a Bitcoin bet. The president's stock in the company is worth $2.4 billion, accounting for roughly 45% of his overall fortune. Trump has other crypto ventures as well. He got into the space in 2022, launching cartoonish digital-trading cards, which sold out almost immediately and routed more than $7 million to the cash-hungry developer. Next came World Liberty Financial, a project Trump and his sons launched with the family of fellow real-estate player Steve Witkoff, who now serves as ambassador at large for the president. That project sold $550 million of crypto tokens, generating an estimated $390 million for Trump—$250 million after taxes. World Liberty also launched a stablecoin business, adding another $60 million or so to Trump's net worth, according to Forbes estimates. Then there is the $TRUMP memecoin, launched days before the inauguration. The coin has kicked off an estimated $315 million in fees and dollar-tied crypto to the president, or about $200 million after taxes. Trump also holds a stash of tokens worth an estimated $430 million. Total everything, and the president's crypto ventures account for roughly 60% of his net worth today. No wonder Trump has done so many favors for the crypto community. Before taking office, he named venture capitalist David Sacks, who held deep investments in the crypto industry, to serve as crypto czar. On inauguration day, Trump nominated a pro-crypto businessperson, Paul Atkins, to lead the Securities and Exchange Commission, which went on to drop more than a half dozen cases against crypto firms. Trump also issued an order in January touting the promise of digital assets and demanding his administration support them. In March, the president signed an executive order to create a federal Bitcoin reserve. Meanwhile, Trump's real estate business has shown few signs of growth. The president's office tower on Wall Street appears to be underwater. A three-building complex in San Francisco also faces debt challenges. The market in Palm Beach, where the president holds nearly $500 million worth of real estate, plateaued three years ago. Eric Trump, who runs his father's business these days, hinted at the shift when speaking to a cryptocurrency conference in Dubai this spring. 'These assets have become the greatest complement to one another,' he said. 'Real estate's illiquid. It's hard to move. It's really only accessible, you know at least on a large scale, to very few. It's very static in terms of location. And then all of the sudden, you go to cryptocurrencies, which is immediately liquid, easy to move, accessible to anyone. And you actually realize that cryptocurrencies become the greatest hedge in the world to hard assets.' At least for Donald Trump.
Yahoo
06-06-2025
- Business
- Yahoo
Trump Media, Owner of Truth Social, Looks to Issue $12B Worth of New Shares
President Donald Trump's media company has registered up to $12 billion in new securities, according to a new S-3 filing. Trump Media and Technology Group (DJT), parent company of social media platform Truth Social, registered with the U.S. Securities and Exchange Commission (SEC) to issue up 84,657,181 shares of Common Stock on Thursday. The company last week closed a $2.44 billion fundraising deal to establish a bitcoin treasury. This announcement was followed by TMTG filing paperwork with the SEC to list a bitcoin exchange-traded fund (ETF), similar to existing 11 spot BTC products that trade in the U.S. DJT shares closed at $20.12 on Thursday, over 8% lower on the day following news of the President's spat with Elon Musk. Sign in to access your portfolio
