Shares of Trump Media, the parent of social media app Truth Social, surged on Tuesday after announcing plans to expand into financial services.
The company’s stock climbed as much as 17% in premarket trading on the news.
Trump Media said in a press release that its board approved an investment of up to $250 million to be custodied by Charles Schwab. The move serves as a way to diversify its cash reserves, which exceeded $700 million at the end of 2024.
“We look forward to launching Truth.Fi, introducing TMTG’s investment vehicles, and unlocking synergies,” said TMTG CEO Devin Nunes. “Truth.Fi is a natural expansion of the Truth Social movement. We began by creating a free-speech social media platform, added an ultra-fast TV streaming service, and now we’re moving into investment products and decentralized finance.”
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“Developing American First investment vehicles is another step toward our goal of creating a robust ecosystem through which American patriots can protect themselves from the ever-present threat of cancellation, censorship, debanking, and privacy violations committed by Big Tech and woke corporations,” he added.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DJT | TRUMP MEDIA & TECHNOLOGY GROUP CORP | 33.09 | +3.05 | +10.15% |
The Sarasota, Florida-based company said it plans to allocate these funds into various investment options, including exchange-traded funds (ETFs), separately managed accounts, bitcoin, and other similar cryptocurrencies.
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The company said that it expects its various Truth.Fi products and services, including multiple investment vehicles, will be rolled out in 2025 as new agreements are consummated, funding levels are determined and any necessary approvals by financial regulators are approved.
TMTG said in a release that its investment vehicles and financial products “are expected to focus on investments in American growth, manufacturing, and energy companies as well as investments that strengthen the Patriot Economy.”
Reuters contributed to this report.
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