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DJT Stock Drops After Trump Media Announces $2.5B Bitcoin Treasury Plan: What's Going On?
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DJT Stock Drops After Trump Media Announces $2.5B Bitcoin Treasury Plan: What's Going On?
May 28, 2025 12:08 PM

Shares of Trump Media & Technology Group Corp ( DJT ) , parent company of Truth Social, have been under pressure following the company's announcement on Tuesday of a bold pivot into cryptocurrency. DJT stock plunged over 15% since the market opened Tuesday and is down an additional 2.3% on Wednesday, despite no new headlines.

What To Know: On Tuesday, Trump Media ( DJT ) revealed it will raise $2.5 billion through a private placement involving approximately $1.5 billion in common stock and $1 billion in zero-coupon convertible notes.

The funds are earmarked to establish a Bitcoin treasury, which CEO Devin Nunes described as a strategic asset to protect the company from perceived financial discrimination and to support future crypto-based offerings across its platforms, including Truth Social and the upcoming Truth+.

Read Also: Wall Street Stalls As Treasury Yields Climb Again Ahead Of Nvidia Earnings, Fed Minutes: What’s Driving Markets Wednesday?

The announcement sparked sharp reactions. Economist Peter Schiff accused the company of "front-running the Strategic Bitcoin Reserve," suggesting potential conflicts of interest given Donald Trump's political ambitions and family involvement in crypto.

Despite the backlash, Trump Jr. reinforced the family’s long-term bullish stance on Bitcoin during the Bitcoin 2025 conference in Las Vegas. He described the move as "seriously long crypto" and dismissed rumors of broader crypto diversification, clarifying the funds will go exclusively to Bitcoin.

Investor sentiment, however, remains cautious, with the stock now down over 33% year-to-date amid skepticism over the company’s revenue model and high-risk strategy.

Read Also: Nvidia Bullish Ahead Of Q1 Earnings, But Will H20 Chip Woes Dampen The Party?

How To Buy DJT Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Trump Media & Tech Group’s case, it is in the Communication Services sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

Image: Shutterstock

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