Trump Media (DJT) stock closed higher on Tuesday after announcing an agreement with Yorkville Acquisition Corp (YORK) and Crypto.com to set up a crypto treasury company.
In a regulatory filing today, the media-tech firm said it will pay $50 million in cash and 2.8 million of its shares to Crypto.com in exchange for nearly 685 million CRO (CROUSD), the native token of the Cronos blockchain.
TMTG also confirmed the new crypto treasury company will be called Trump Media Group CRO Strategy and will trade on the Nasdaq Exchange under the ticker MCGA.
Despite today’s gain, DJT stock is down roughly 60% versus its year-to-date high in mid-January.
Why Does It Matter for DJT Stock?
Launching the new crypto treasury company could prove meaningfully constructive for DJT shares given it positions the Florida-based company to capitalize on crypto market enthusiasm.
The deal diversifies its asset base and signals long-term strategic intent to stake CRO holdings for yield and integrate token utility across its platforms.
Investors view this as a bold pivot toward capital efficiency and blockchain monetization, driving optimism and boosting Trump Media stock price on expectations of future crypto-driven growth.
DJT Shares Remain a High-Risk Bet
Despite the crypto treasury announcement, DJT stock remains an unattractive investment due to a lack of institutional coverage and weak fundamentals.
Wall Street doesn’t currently offer estimates or rating for Trump Media, leaving investors without professional guidance on earnings, valuation, or growth outlook. The absence of analyst coverage indicates low institutional confidence and limits visibility into future performance.
Financially, DJT operates with alarmingly negative operating margin, signaling deep inefficiencies in its core business. TMTG’s revenue remains minimal and its valuation, at over 1,300x sales, is disconnected from fundamentals.
Simply put, Trump Media’s reliance on speculative ventures like crypto holdings adds volatility without proven monetization and its flagship platform Truth Social is yet to demonstrate scalable user growth or ad revenue traction.
Without analyst oversight, sustainable profitability, or a clear growth roadmap, DJT shares trade more on political sentiment than business merit, making it a risky bet for serious investors.
