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In what is a critically-needed diversification step, Trump Media and Technology Group (DJT), the parent entity of the Truth Social platform as well as the Truth Plus content streaming service, has just announced its entry in the FinTech space.
$DJT - TRUMP MEDIA & TECHNOLOGY: LAUNCH OF FINANCIAL SERVICES AND FINTECH BRAND https://t.co/x1QZkfCZ0K
— *Walter Bloomberg (@DeItaone) January 29, 2025
To wit, Trump Media and Technology Group board has now approved the diversion of up to $250 million from its current reserve of around $700 million in cash and cash equivalents towards a diverse group of assets, to be custodied by Charles Schwab.
Under the Truth.Fi banner, Trump Media and Technology Group would invest in customized Separately Managed Accounts (SMAs), ETFs, Bitcoin, and other crypto assets. The company's press release goes on to state:
The SMAs will be developed in partnership with Charles Schwab, which would also broadly advise on TMTG's Truth.Fi investments and strategy. An affiliate of Yorkville Advisors ("Yorkville") would serve as the Registered Investment Adviser for investment vehicles and financial products, which are expected to focus on investments in American growth, manufacturing, and energy companies as well as investments that strengthen the Patriot Economy.
Of course, this diversification strategy was sorely needed. After all, with just 646,000 daily visits, Truth Social barely makes any money. Bear in mind that Trump Media disclosed just $1 million in revenue and $4.7 million in interest income for the third quarter of 2024.
Do note that Trump recently transferred his gigantic stake in DJT to a trust led by Don Jr.
This comes as the US President Trump and the first lady Melania recently debuted their own meme coins: $TRUMP and $MELANIA.
The $TRUMP meme coin is not the president-elect's first foray into the nascent crypto sphere. Back in October, the Trump family endorsed a crypto DeFi platform, dubbed World Liberty Financial. In return, the family stands to gain hefty fees from the sale of $WLFI tokens.
At the time of writing, Trump Media and Technology Group shares are up around 15 percent in pre-market trading, indicating the euphoria with which investors appear to be welcoming today's development.
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