*

Trump memecoin soars in value, Melania Trump's too

*

Retail investors adopt meme-stock mentality, vow never to

sell

shares

*

Trump Media's ( DJT ) value so far detached from fundamentals

*

Shares swung wildly last year

(Adds quotes about new digital token $Strump, updates wealth

with crypto coin)

By Michelle Conlin

NEW YORK, Jan 20 (Reuters) - One night in late October,

Whitney Patterson spotted a YouTube video about people buying

shares in Trump Media & Technology Group ( DJT ), the U.S.

president-elect's social media and streaming company.

Patterson had never heard of Trump Media ( DJT ) and had never

invested in a stock on her own. But that night, Patterson, whose

family owns a pickle business, moved a third of the cash in her

retirement fund into Donald Trump's company.

About a week later, she voted for him too.

Now, Trump Media ( DJT ) investors are joined by those investing in

a digital token called $Trump, branded with an image from

Trump's attempted assassination in July, that Trump launched on

Friday night.

Patterson said that because Trump has vowed never to sell

his Trump Media ( DJT ) stock, neither will she. She believes the shares

will become so valuable they will provide a legacy for the three

young daughters she schools in her Pittsburgh home.

"I know how important Truth Social is going to be in my

lifetime and for my girls' future," said Patterson, of the

social-media platform owned by Trump Media ( DJT ). "I'm not pulling

out." She did not want to publicize the amount she invested.

Patterson, 45, is one of 600,000 retail investors whose

fortunes are linked with those of the president-elect they

support, and they see Monday's inauguration as a turning point

for the stock.

Trump owns a 53% stake worth $4.6 billion. Retail investors

are the company's second-biggest ownership group, owning more

than a quarter of it.

Some of the 39,000-member $DJT stock group on Truth Social

gathered in Washington, D.C., over the weekend to pass out

company swag then watch Trump take office for the second time on

Monday.

In thousands of messages on social media stock chat groups,

and in more than a dozen interviews, Trump Media's ( DJT ) small

investors professed the same never-sell approach that animated

GameStop mania and the bitcoin frenzy that saw the

cryptocurrency break $100,000 after the November presidential

election.

Trump Media ( DJT ) investors were trying to figure out what to make

of the Trump crypto coin on Monday. Trump Media ( DJT ) shareholder

George L. Paschall, 46, who works for a flooring company in

Saginaw, Michigan, said he only learned about the $Trump coin,

"after it blew up. I will likely wait for it to settle before

buying some."

Investors say they are well aware of Trump Media's ( DJT ) status as

a meme stock but they say they are impervious to its wild price

swings because they believe the company, which served as a proxy

for Trump's election odds, will become more valuable as Trump

returns to the White House.

In social-media posts and interviews, they speculated that X

owner Elon Musk and Trump could merge their social-media

platforms. They also point to efforts by Trump Media ( DJT ) to

investigate the possibility of naked short selling before the

election.

Others say they believe that by investing, they are

supporting the "patriot economy." As Trump's presidency begins,

"the momentum and support will be unstoppable," Patterson said.

Shares closed on Friday at $40.03, up 18% since Election Day

but down from their 2024 high of $79.38 in March. The stock fell

last year as low as $11.75 in September.

The same fever was around the Trump coin on Monday. But on

Truth Social some posted about how they were upset that the coin

was potentially a rival to Trump Media ( DJT ).

Trump Media's ( DJT ) $8.7-billion market cap remains detached from

its business fundamentals. On election night, it reported a

third-quarter net loss of $19.2 million on revenue of $1

million, with a cash balance of $672.9 million.

"DJT remains a typical meme stock with a loyal retail holder

base that trades on speculation, opposed to fundamental value,"

said Matthew Unterman, managing director of analytics firm S3

Partners.

The Trump Organization, the Trump transition team and Trump

Media ( DJT ) did not respond to requests for comment.

GOLF CLUBS TO SOCIAL MEDIA

When Trump left the White House in January 2021, his net

worth was $2.4 billion, according to Forbes magazine. His

holdings were made up of real estate, private country clubs and

licensing deals.

Forbes now estimates Trump's net worth at $6.7 billion. His

stake in Trump Media ( DJT ) makes up, on paper, the biggest chunk of

his fortune. Trump has nominated three Trump Media ( DJT ) board members

to serve in his administration.

That does not include the value of the $Trump coin launched

on Friday.

The market capitalization of the coin was around $10.8

billion according to CoinMarketCap, potentially adding another

$8.2 billion--at least on paper--to Trump's net worth.

Four-fifths of Trump coin's tokens are owned by CIC Digital,

an affiliate of Trump's business, and another entity called

Fight, Fight, Fight, according to its website. It says the coins

are "an expression of support for, and engagement with, the

ideals and beliefs embodied by the symbol '$TRUMP'" and are not

an investment or security.

The President-elect's team did not immediately respond to a

request for comment about his net worth or the potential rivalry

for dollars with Trump Media ( DJT ).

In December, Trump transferred his Trump Media ( DJT ) shares into a

revocable trust controlled by his son, Don Jr. The Trump

Organization said this month Trump will hand daily management of

his holdings to his children when he takes office, repeating an

arrangement he made during his first term that some ethics

experts said still posed conflicts.