Trump Media & Technology Group Corp. (NASDAQ: DJT), which announced plans to expand its financial services division, is on the rise.
The company founded by President Trump in 2021 is investing $250 million to create a new financial service division called Truth.Fi.
According to a press release issued on Wednesday, TMTG plans to use the money for new investment vehicles such as customized exchange-traded fund (ETFs) or cryptocurrencies.
Trump Media’s stock is still about 20% below its high for the year.
What Truth.Fi means to Trump Media stock
Trump Media plans to launch a new division of financial services by the end 2025.
Chief executive Devin Nunes called it a “natural extension” of the company’s broader Truth Social campaign. He said it was a major step toward “our goal of establishing a robust ecosystem” to protect Americans from “the ever-present threat of cancellations, censorships, and privacy violations.”
Truth.Fi also aims to protect conservatives from de-banking.
TMTG’s announcement comes shortly after President Donald Trump urged US banks to open their doors to conservatives, following multiple reports that banks were treating them differently.
Trump Media’s stock has risen more than 150% since its September low.
TMTG is currently debt-free
Trump Media has launched Truth.Fi to diversify its portfolio. Its cash reserves are more than $700,000,000.
The news comes a few months after the media company announced a 5.6% drop in its quarterly revenues. TMTG lost a combined $19.2 million during its third financial quarter.
The Nasdaq listed company ended Q3 with zero debt. The chief executive of the company told investors at the time:
This quarter has been a remarkable one for the company. We continue to explore new growth opportunities.
Trump Media’s stock is not attractive to income investors because it does currently not pay a dividend.
President Trump focuses on crypto industry
Note that President Donald Trump has a majority stake currently in TMTG.
The company’s announcement is even more significant because the Republican leader is dedicated to making America the leader in emerging technologies including cryptocurrencies.
The digital assets industry welcomed the new Trump-branded coin shortly before his inauguration, on January 20 th. This coin brought billions of dollar in on-paper gains for the Trump Organisation and its affiliates.
Trump also recently passed executive orders aimed at establishing a comprehensive set guidelines that regulates the crypto market.
He wanted the US to become a cryptosuperpower.
Trump Media’s move to crypto is in line with the larger vision of the US president.
Despite today’s surge in TMTG share prices, the shares are still down about 50% from their 52-week high price of $66,
This post Trump Media (DJT), stock jumps 15% after $250M expansion in crypto and financial services may be modified as new information unfolds
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