Shares of Trump Media and Technology Group Corp. (NASDAQ: DJT) surged in this morning’s trading session by more than 8% on news that the company is expanding into the financial services and financial technology industries.Trump Media announced on Wednesday the launch of its fintech brand Truth.Fi, in partnership with Charles Schwab (NYSE: SCHW) — backed by an initial $250 million investment.The new ventures could include bitcoin and other cryptocurrency investments and customized exchange-traded funds (ETFs).President Donald Trump is the majority owner of Trump Media, with his shares now held in a revocable trust controlled by his son Donald Trump Jr.Trump Media is the parent company of the president’s fledgling social media platform, Truth Social, which has roughly 1 million active monthly users — approximately 1% of the user base of X, formerly known as Twitter.During the first half of 2024, Trump Media has reported just $1.6 million in revenue. In spite of its paltry earnings, the company’s market cap exceeds $7 billion, just $1 billion shy of the valuation of X Corp., the parent company of the Elon Musk-owned social media platform.Since going public last March, Trump Media stock has functioned as a meme stock, with its performance entirely unrelated to market fundamentals. Prior to the election, it was viewed as a proxy for how the market perceives Trump’s prospects for reelection.The stock has experienced a rollercoaster series of ups and downs, with bull runs followed by extended bear streaks — including on October 15, 2024, when its stock surged by 13% before plunging 10% in the same day.The Trump Media organization has also faced volatility within, with resignations and reports of whistleblower allegations of mismanagement by the company’s CEO, former Rep. Devin Nunes.The expansion of Trump Media into banking further blurs the lines between the president’s business and politics, unlike any other American leader.Just before his second inauguration, Trump and his wife Melania launched their own meme coins, with the president’s crypto rapidly reaching a peak market cap of $73 billion only to fall below $6 billion.Trump has not only expressed support for the crypto industry and but also has nominated Paul Atkins as chair of the Securities and Exchange Commission, a move that will likely lead to deregulation of the sector. Trump Media’s new banking ventures follow allegations by the president and his supporters that mainstream financial institutions have debanked conservatives.The president’s children and other relatives also are rapidly expanding their business abroad, particularly with state-aligned companies in the Middle East whose leaders are in close contact with the president.Advertisement
Gio. Gen 30th, 2025
