Trump Media’s Stock Plunges After Bitcoin Investment Plan Sparks “Crypto-Style” Volatility

TradingKey - Trump Media & Technology Group (TMTG, ticker: DJT.US) experienced a wild, “crypto-like” trading session in U.S. markets yesterday (charts below). The stock closed down 10.38% at USD 23.05 per share.

[DJT Intraday Chart, Source: Futu]

Before the market opened, the Financial Times reported that Trump Media was planning to raise USD 3 billion for cryptocurrency investments. However, when contacted by Reuters for comment, Trump Media dismissed both Reuters and the Financial Times as “fake news.” The White House did not immediately respond to requests for comment. Still, pre-market trading saw the stock rise more than 16%.

[DJT Pre-Market Intraday Chart, Source: Futu]

Shortly after the pre-market session, Trump Media issued a statement announcing plans to issue approximately USD 1.5 billion in new shares and USD 1 billion in convertible bonds, raising a total of USD 2.5 billion. The company said the proceeds would be used entirely to purchase Bitcoin, which will become its “core reserve asset.” According to disclosures, Trump Media has already signed subscription agreements with around 50 institutional investors.

Following the announcement, the stock tumbled sharply during regular trading hours. It appears investors initially reacted positively to the Bitcoin investment news but later turned cautious over concerns about the company’s long-term business outlook. Given Trump Media’s relatively small market capitalization, it is particularly vulnerable to sharp swings driven by investor sentiment.

Meanwhile, on May 28 at the “Bitcoin 2025” conference, Donald Trump Jr., the eldest son of former U.S. President Donald Trump, revealed that the Trump family had faced widespread “de-banking” since 2016 due to political reasons, prompting him and his brother Eric to push for a major shift in their father’s stance toward cryptocurrencies.

Donald Trump Jr. explained that this experience made the family acutely aware of the fragility of the traditional financial system. Although Trump once publicly called Bitcoin a “scam” in 2021, he quickly came to understand and accept the core value of the technology after detailed explanations from his sons.

Is Trump Media Going “All-in” on Bitcoin?

At present, Trump Media seems to be following in the footsteps of MicroStrategy, pursuing a strategy of continuous fundraising and accumulating Bitcoin.

According to data, MicroStrategy currently holds 580,250 Bitcoins. If it continues to increase its Bitcoin allocation, its business model may gradually resemble that of a “Bitcoin fund.”

As demonstrated by MicroStrategy’s evolution, once a company adopts Bitcoin as a core strategic asset and consistently adds to its holdings, its stock price becomes increasingly tied to Bitcoin’s volatility, while its core business takes a backseat. Eventually, such companies function more like “crypto ETFs” disguised as operating firms.

For investors, such strategies may offer short-term speculative opportunities but also carry heightened systemic risks. Should Bitcoin prices retreat, these companies’ valuations could face severe downward pressure.

[MicroStrategy, Trump Media, and Bitcoin Intraday Chart, Source: TradingView]

Investors should also note that in 2024, Trump Media reported revenue of only USD 3.6 million and suffered annual losses of USD 400 million. Despite this, its stock continues to swing violently. So far this year, the company’s shares have fallen nearly 30%, with a current market cap of approximately USD 5.3 billion.