Trump Media saw a significant increase in its stock price on Monday, closing up 3% after peaking at over 5% during the day, reaching $19.25 per share. This surge followed the company's announcement of a $2 billion investment in Bitcoin.
The media conglomerate, which includes President Donald Trump's social media platform Truth Social, the streaming service Truth+, and the financial services brand Truth.Fi, indicated that its latest cryptocurrency purchases are part of a previously outlined strategy to create a Bitcoin treasury. Currently, Bitcoin assets make up two-thirds of Trump Media's total assets, which amount to $3 billion, indicating a strengthened commitment to the leading cryptocurrency.
Devin Nunes, CEO and president of Trump Media, reaffirmed the company’s dedication to its publicly stated strategy, noting that these assets are intended to ensure the company's "financial independence" and shield it from potential biases by financial institutions. Additionally, Nunes announced plans to launch a utility token within the Truth Social ecosystem, aiming to boost user engagement and generate new revenue opportunities.
Beyond its Bitcoin acquisition, Trump Media has set aside $300 million for an "options acquisition strategy" focusing on Bitcoin-related securities. Trump's advocacy for a more favorable regulatory landscape in Washington, D.C., has led to notable price rises and increased adoption of digital assets by publicly traded companies.
Recently, President Trump endorsed legislation establishing the first federal framework for dollar-backed stablecoins, a significant move anticipated to accelerate the adoption of these digital currencies under the GENIUS Act. This initiative aligns with the launch of World Liberty Financial, a new cryptocurrency startup supported by Trump and his sons, which recently unveiled its own US dollar-pegged stablecoin, USD1, in partnership with BitGo.
Trump Media's ambitious plans include raising $2.5 billion to further grow its Bitcoin treasury. This strategy, which combines public equity and debt issuance, draws inspiration from Michal Saylor’s transformative work at Strategy (formerly MicroStrategy), where the shift to becoming a Bitcoin-focused company began in 2020. Despite the recent rally in stock prices, Trump Media has faced volatility, with its stock declining 25% since announcing its Bitcoin treasury strategy in late May, and down 45% year-to-date. In contrast, Bitcoin recently achieved a new record price exceeding $123,000, although it has struggled to maintain stability within the $118,000 to $119,000 range, currently valued at $116,960.
