Truth Social Parent Company Launches Truth.Fi Amid Stock Surge
Trump Media & Technology Group (DJT) saw its stock rise as much as 12% on Wednesday after announcing its expansion into financial services. The company plans to invest up to $250 million into cryptocurrency funds and customized exchange-traded funds (ETFs) under a new brand, Truth.Fi.
According to the company, the investment represents less than a third of its $700 million cash reserves and will be managed under the custody of Charles Schwab. Schwab will also provide advisory services on investment strategies.
Trump Media, which operates the social media platform Truth Social and the video streaming service Truth+, currently holds a market capitalization of approximately $7.2 billion. Former President Donald Trump owns a 53% stake in the company, making his share worth an estimated $3.8 billion.
Challenges Amid Expansion
While the company continues to position itself as a competitor in the social media space, its financial fundamentals remain under scrutiny. Trump Media reported a net loss of $19.25 million in the third quarter, with revenue reaching just $1.01 million. The company had $370 million in cash at the end of the quarter.
Despite increased volatility ahead of the election, DJT stock has only gained 5% over the past six months. Shares, currently trading around $33, closed at just under $36 on Nov. 6.
As Truth Social seeks to expand beyond social media, the launch of Truth.Fi signals an ambitious push into the financial sector, though its long-term viability remains uncertain.
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