Posted on 01/29/2025 8:45:35 AM PST by lasereye
Trump Media & Technology Group (DJT) stock opened as much as 12% higher on Wednesday after the company announced it would expand into financial services, including cryptocurrency funds and other investment vehicles like customized exchange-traded funds.
According to a press release, the company will invest as much as $250 million into the rollout, which will launch under the brand name Truth.Fi. That investment, which is less than a third of the company's total cash pile of $700 million, will be kept under the custody of Charles Schwab. Schwab will also "broadly advise" on investments and strategies.
Trump Media, which operates the president's social media platform Truth Social and the recently launched video streaming platform Truth+, boasts a market cap of around $7.2 billion.
President Trump maintains a roughly 53% interest in DJT, according to the latest SEC filing from Dec. 17., making his stake worth approximately $3.8 billion.
Trump founded Truth Social after he was kicked off major social media apps like Facebook (META) and Twitter, now X, following the Jan. 6, 2021, Capitol riots. Trump has since been reinstated on those platforms. He officially returned to posting on X in mid-August after about a year's hiatus.
As Truth Social attempts to take on social media incumbents, the fundamentals of the company have long been in question.
On Nov. 5, just a few hours before the polls closed on Election Day, DJT dropped third quarter results that revealed a net loss of $19.25 million for the quarter ending Sept. 30. DJT also reported revenue of $1.01 million. It held about $370 million in cash at the end of the quarter.
The stock, which was especially volatile in the months leading up to the election, is up a modest 5% over the past 6 months.
(Excerpt) Read more at finance.yahoo.com ...
Where do I sign up?
12% for the big guy! LOL!
JUST PLAIN BORN WITH IT.
As long as DJT trades above $25.50/share, I’m good. If it drops below that, I’m buying more.
(this came off a news screen in my acc't)
[snip] UPDATE 2-Trump Media launches FinTech services brand amid crypto boom
09:33:47 AM ET, 01/29/2025 - Reuters
(Updates share movement in paragraph 1, adds details and background in paragraphs 4-8)
Jan 29 (Reuters) - Truth Social parent Trump Media and Technology Group said on Wednesday its board of directors has approved the launch of a financial services and FinTech brand Truth.Fi, sending shares of the firm up over 11% in early trading.
The company board has also authorized an investment of up to $250 million through Charles Schwab as it seeks to diversify its cash holdings, which exceeded $700 million at the close of the previous year.
The Sarasota, Florida-based company said it plans to allocate these funds into various investment options, including exchange-traded funds, separately managed accounts (SMAs), Bitcoin, and other cryptocurrencies.
Trump Media's move into finance follows Donald Trump's election to the White House in November and the election of several pro-crypto lawmakers to Congress, which led to a surge in the prices of Bitcoin and other cryptocurrencies.
During his campaign, Trump expressed strong support for digital assets and vowed to establish the United States as the "crypto capital of the planet."
The SMAs will be developed in collaboration with Charles Schwab, which will provide strategic advice on TMTG's Truth.Fi investments and strategy.
Truth.Fi products and services will roll out in 2025 after funding levels are determined and necessary approvals by financial regulators are secured, the company said.
Trump Media has also ventured into streaming platforms with the launch of Truth+ Streaming last year. In November, the company reported a $19 million loss in its third-quarter due to legal fees and costs tied to its TV streaming deal.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Tasim Zahid) [/snip]
52-week range $11.75 $79.38
[the 2023 trading range mostly ran in the high teens, looks like the high was a bit over $20. No earnings.]
In 2024 the stock basically functioned as a way of betting on the election outcome.
It’s probably better to buy 100 of Schwab & Co, rather than say 200 of DJT — although the latter may be a decent way to make money in the froth of the fluctuations.
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