Trump Media’s stock value surged following the announcement that the company has amassed approximately $2 billion in Bitcoin and associated securities as part of its openly declared treasury strategy. The news led to a 7.5% increase in the stock, pushing it to $20.08 in Monday’s premarket trading, despite a nearly 50% drop in value over the past year.
As reported, Trump Media and Technology’s Bitcoin and related securities now account for about two-thirds of its near $3 billion liquid assets. The firm, which manages Trump’s Truth Social platform, intends to continue expanding its Bitcoin and associated securities portfolio, with a further $300 million already earmarked for a crypto asset options acquisition strategy.
Devin Nunes, Chief Executive, expressed that these assets are crucial to the financial independence of the company, offering protection against financial institution discrimination and fostering synergies with the upcoming utility token for the Truth Social network.
Trump Media has previously ventured into the crypto industry by filing to initiate a Bitcoin investment fund and launching Truth.Fi, a finance company that intends to invest approximately $250 million in cryptocurrencies and other assets.
Through the signing of the Genius Act into law, Trump has facilitated widespread adoption and investment in the crypto industry, providing oversight for stablecoins, a crypto asset usually tied to a government currency like the US dollar. Furthermore, Trump has been advocating for the passing of the Clarity Act, which would establish a definitive regulatory framework for digital assets.
Once critical of the industry, Trump last year pledged to make the US the “crypto capital of the world” and to reduce regulatory hurdles in the sector.
