Trump Media Allows Investment in Digital Assets

Trump Media & Technology Group has received approval from the board of directors to invest in cryptocurrency assets, marking a new strategic direction for the company behind Truth Social. Trump Media invests in cryptocurrency amid plans for expansion Trump Media plans to allocate up to 250 million dollars from its 700 million dollar cash reserves to Bitcoin, focusing on cryptocurrencies and exchange-traded fund (ETF). This decision was made as Trump Media continues to overcome financial difficulties and aims to diversify its holdings. Previously, the company announced its expansion into financial services, including cryptocurrency investments. Trump Media was established through a white-check merger in March and is still predominantly controlled by President Donald J. Trump, with his shares managed in a trust fund overseen by his son, Donald Trump Jr. The company must face increasing losses and declining revenue Despite striving to make Truth Social a direct competitor to platforms like Facebook and Instagram from Meta or X from Elon Musk, Trump Media still benefits from the 'meme stock' status. This title has helped the company raise a significant amount of capital since going public last year. The financial profile shows that the company ended 2024 with only 29 full-time employees. Revenue decreased by over 12% to $3.6 million, while net losses soared to $401 million, significantly increasing the accumulated deficit to $2.9 billion. Business operations have used up 61 million dollars in cash, with the majority of the net loss being due to changes in derivative liabilities. In addition, the company has distributed over 107 million dollars in stock to employees despite declining revenue.