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Trump Media’s $2 Billion Bitcoin Buy Sparks Surge In Stock Price

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Trump Media experienced a notable uptick in its stock price (DJT) on Monday, closing up 3% after an intraday rise exceeding 5% to reach $19,25 per share. This surge followed the company’s announcement that it had invested $2 billion in Bitcoin (BTC).

Two-Thirds Of Assets To Bitcoin Treasury

The media group, which encompasses President Donald Trump’s social media platform Truth Social, the streaming service Truth+, and the financial services brand Truth.Fi, revealed that the recent cryptocurrency purchases align with a strategy initially outlined in May to establish a Bitcoin treasury. 

According to Trump Media, these Bitcoin assets now represent two-thirds of its total $3 billion in assets, signaling a deepened financial commitment to the world’s largest cryptocurrency.

Devin Nunes, CEO and president of Trump Media, emphasized the company’s unwavering focus on executing its publicly announced strategy. He stated that these assets are designed to secure the company’s “financial independence” and protect it from potential discrimination by financial institutions. 

Furthermore, Nunes mentioned plans to introduce a utility token within the Truth Social ecosystem, which could enhance user engagement and create new revenue streams.

In addition to acquiring Bitcoin, Trump Media has allocated $300 million towards an “options acquisition strategy” focused on Bitcoin-related securities.

Trump’s Regulatory Push

Trump’s support for a more supportive regulatory environment in Washington, D.C., has resulted in significant price increases and surging adoption by public traded companies in the digital asset industry.

Recently, President Trump signed legislation that establishes the first federal framework for dollar-backed stablecoins, a significant endorsement expected to foster greater adoption of these digital assets under the GENIUS Act. 

This move coincides with the launch of World Liberty Financial, a new crypto startup supported by Trump and his sons, which recently introduced its own US dollar-pegged stablecoin, USD1, in collaboration with BitGo.

Trump Media’s ambitious plans include raising $2.5 billion to further expand its Bitcoin treasury. This approach, which blends public equity and debt issuance, has drawn inspiration from Michal Saylor’s pioneering efforts at Strategy (previously MicroStrategy), where the company’s transformation into a Bitcoin powerhouse began in 2020.

Despite the stock’s recent rally, the performance of Trump Media has been volatile. Since announcing its Bitcoin treasury strategy in late May, the stock has fallen 25%, and it is down 45% year-to-date.

Trump Media’s  Billion Bitcoin Buy Sparks Surge In Stock Price - ExpertFX School

On the other hand, Bitcoin recently reached a new record price above $123,000. Since then, however, the cryptocurrency has struggled to consolidate within its latest range of $118,000 to $119,000 and has fallen back toward its current valuation of $116,960.

Featured image from DALL-E, chart from TradingView.com 

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