Trump Media & Technology Group Corp (NASDAQ: DJT) is pushing to the upside after announcing plans to expand into financial services.
The company that President Trump founded in 2021 will invest some $250 million to set up a new financial services division that it’s calling Truth.Fi.
TMTG will use the money to introduce new investment vehicles, including customized exchange-traded funds (ETFs) and cryptocurrencies, as per its press release on Wednesday.
Trump Media stock is still down about 20% versus its year-to-date high.
What Truth.Fi means for Trump Media stock
Trump Media plans on launching a new financial services division by the end of 2025.
Calling it a “natural expansion” of the company’s broader Truth Social movement, chief executive Devin Nunes said it’s a major step towards “our goal of creating a robust ecosystem” that protects Americans from the “ever-present threat of cancellation, censorship, and privacy violations.”
Truth.Fi aims at protecting the conservatives against de-banking as well.
TMTG’s announcement arrives shortly after President Donald Trump urged the largest US banks to open up to conservatives following multiple reports that banks are treating them differently.
Versus its low in September, Trump Media stock is up more than 150% at writing.
TMTG does not currently have any debt
Trump Media is leveraging its cash reserves of more than $700 million to diversify its portfolio with the launch of Truth.Fi.
The news arrives a couple of months after the media company reported a 5.6% decline in its quarterly revenue. TMTG lost a total of $19.2 million in its third financial quarter.
More importantly, the Nasdaq-listed firm ended its Q3 with no debt. At the time, its chief executive told investors:
This has been an extraordinary quarter for the company [and we continue] to explore additional possibilities for growth.
Nonetheless, Trump Media stock remains unattractive for income investors as it does not currently pay a dividend.
President Trump is focused on the crypto industry
Note that President Donald Trump currently has a majority stake in TMTG.
That’s what makes the company’s announcement even more significant since the Republican leader is committed to making America a leader in emerging technologies, including cryptocurrencies.
Shortly before his inauguration on January 20th, the digital assets industry welcomed a new Trump-branded meme coin that brought billions of dollars worth of on-paper gains to the Trump Organisation (including its affiliates).
Trump has also passed executive orders recently aimed at building a comprehensive set of guidelines that regulate the crypto market.
More broadly, he wanted to make the US a crypto superpower.
So, Trump Media’s move into crypto aligns perfectly with the broader vision of the US President.
Despite today’s surge, TMTG shares are still down some 50% versus their 52-week high of $66.
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