Cryptocurrency stocks have been gaining serious traction ever since regulators opened the door to spot Bitcoin (BTCUSD) exchange-traded funds (ETF). Major players like BlackRock (BLK) and Fidelity have already made waves in this space, but now, a surprising new entrant is making headlines. Trump Media & Technology Group (DJT), best known for its social media platform Truth Social, is pivoting toward digital finance with a newly proposed Bitcoin and Ethereum (ETHUSD) ETF.
Officially titled the Truth Social Bitcoin and Ethereum ETF, the fund plans to allocate 75% of its assets to Bitcoin and 25% to Ethereum, with Crypto.com tapped as custodian and execution agent. With Yorkville America Digital as the sponsor, Trump Media is positioning itself as a bold new player in the booming crypto ETF space.
For investors intrigued by DJT’s leap into fintech and crypto, this move could either mark a savvy expansion into a red-hot market or a risky detour from its media roots. Here's what you need to know before betting on DJT stock.
About DJT Stock
Trump Media & Technology Group is best known as the operator of Truth Social, a social media platform launched by President Donald Trump in 2021, along with a nascent video streaming service, Truth+, and a newly announced fintech brand, Truth.Fi. The company’s stated mission is to provide an “America First” online ecosystem free from perceived Big Tech censorship, monetizing via subscriptions, advertising, and financial services.
Valued at around $5 billion by market cap, DJT has been one of the worst-performing stocks in 2025, with shares down more than 45% year to date. Moreover, the valuation is at sky-high levels. The company’s trailing price-sales ratio stands at roughly 1,190x versus a sector median of 1.22x, implying an extraordinary premium over its peers.
$2.5B Capital Raise for Bitcoin Treasury
On May 27, Trump Media & Technology Group announced a $2.5 billion private placement aimed at building a Bitcoin treasury. The private placement includes about $1.5 billion of new common stock issued at market price and $1 billion of zero-coupon convertible notes convertible at a 35% premium. All proceeds will be used to build a Bitcoin treasury. After the raise, CEO Devin Nunes declared that Trump Media will hold cryptocurrency as a core asset, calling Bitcoin an “apex instrument of financial freedom.”
Financial Health
Trump Media & Technology Group currently operates a limited core business, with the majority of its revenue derived from digital advertising on its social media platform. While the company is in the process of diversifying its offerings, launching subscription-based services such as Truth+ and exploring fintech products including ETFs and cryptocurrency initiatives, these efforts remain in the early stages and have yet to generate meaningful revenue.
For the first quarter of 2025, DJT reported revenue of approximately $8.8 million. The company remains unprofitable, posting a net loss of $31.7 million in the quarter.
Despite the weak top-line performance, DJT reported a strong liquidity position, ending Q1 with approximately $759 million in cash, cash equivalents, and short-term investments. Operating cash outflows were relatively modest at $9.7 million, primarily related to legal expenses and SPAC-related costs.
To date, nearly all of the company’s funding has come from its SPAC merger and related stock issuances, rather than from its operating activities. As its core services have not yet produced material cash flow, DJT is expected to rely heavily on its existing cash reserves and potential future financing to support growth initiatives, including potential acquisitions and expansion into financial product markets.
The Bottom Line
Trump Media’s 2025 strategy pivoting heavily into crypto via an ETF filing and a massive Bitcoin treasury represents a bold, high-risk direction. The company has virtually no cash-generating core business, so management is effectively betting its future on the cryptocurrency market and on the willingness of investors to continuously fund it. Such a plan may appeal to speculative, crypto-friendly stakeholders, and it aligns with Trump’s political brand.
However, from a traditional business and financial standpoint, it is speculative. The reliance on fresh capital to finance crypto purchases (instead of internal cash flow) adds dilution and leverage risk. The volatility and regulatory uncertainties around Bitcoin and Ethereum pose significant downsides. Investors should view Trump Media’s crypto gambit as a high-stakes experiment.
On the date of publication, Nauman Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
