Truth Social-parent Trump Media & Technology jumped early Wednesday following the company's announcement it is launching a financial services and financial technology brand.
Trump Media & Technology said Wednesday it will roll out "Truth.Fi" products and services in 2025. This is part of a financial services strategy to "diversify" its cash reserves, according to Trump Media.
The company plans to invest up to $250 million to be "custodied by Charles Schwab." These funds will be allocated to customized separately managed accounts, or SMAs as well as customized exchange-traded funds, or ETFs.
The funding can also go toward "bitcoin and similar cryptocurrencies or crypto-related securities," according to Trump Media.
The company reported that the SMAs will be developed in partnership with Charles Schwab, which will also advise on Trump Media's Truth.Fi investments and strategy.
"We look forward to launching Truth.Fi, introducing TMTG's investment vehicles, and unlocking synergies," Chief Executive Devin Nunes said in the press release Wednesday.
Meanwhile, DJT stock has been one of the top-trending topics on Reddit's meme stock forums with action remaining volatile since Trump's inauguration. The Trump stock leaped nearly 10% to 33 during morning market action on Wednesday, moving above its 200-day line but just below the 50-day.
Trump Media stock is down 11.9% in January.
Sentiment Indicator For The President
The Trump stock often behaves as a sentiment indicator toward the president, moving higher following the July assassination attempt against Trump and dipping lower in September following the presidential debate between Trump and former Vice President Kamala Harris.
Shares hit a low of 11.75 on Sept. 24 but, going into Wednesday's trade, DJT stock has roared back 155% since then.
DJT entered Wednesday's market open down 11% since Trump's election win on Nov. 5, falling nearly 12% in January.
Trump Launches Crypto Task Force; Meme Coin
However, over the past 12 months shares have spiraled as high as 79.38 and flagged as low as 11.75.
Special purpose acquisitions company DWAC took Trump Media and Technology Group, or TMTG, public in a reverse merger. After a prolonged battle, DWAC stockholders voted in favor of the special purpose acquisition company's merger with TMTG. Trump Media is the parent of the conservative social media platform Truth Social.
Donald Trump Stock And Ownership
The monthslong uncertainty over Trump Media's ownership status contributed to the stock's memelike behavior. Meme stocks are typically characterized by pile-in, pile-out trading behaviors stoked by online retail investment discussions.
DJT stock is still certainly being discussed by some of the online trading groups that do drive meme stock-type action.
The Donald Trump stock is among those tracked by the subreddit investor group r/WallStreetBets. Website ApeWisdom shows DJT stock is one of the top-trending issue on r/WallStreetBets as of Tuesday.
The Donald Trump brand and the value of DJT stock are closely related. Truth Social launched after X, then called Twitter, shut down Trump's account following the Jan. 6, 2021, riot at the U.S. Capitol.
Trump Media jumped more than 16% on March 26, its first day trading under the DJT ticker, hitting a high of 79.38 intraday. This followed Digital World Acquisition becoming Trump Media & Technology Group after successfully merging with Trump's tech and social media platform on March 22. The special purpose acquisition company stock had rallied 35% on the day before the change to "DJT."
At that point, the president held a 60% stake in Trump Media, worth several billion dollars based on the current stock price. However, Trump last month shifted all 114.75 million of his shares to the Donald J. Trump Revocable Trust, according to regulatory filings.
Following this move, Trump does not directly own any DJT shares. The president's eldest son, Donald Trump Jr., is the trustee of the trust and has sole voting and investment power over all securities it owns.
Meanwhile, Trump Media reported in November another quarterly loss, with revenue falling 5.6% to $1 million.
Please follow Kit Norton on X @KitNorton for more coverage.
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