Shares of Trump Media (DJT) are surging at the time of writing after the social media company announced that it bought $2 billion worth of Bitcoin and related assets. This move is part of a plan it shared back in May to turn itself into a Bitcoin treasury company. Trump Media, which runs Truth Social, Truth+ streaming, and the Truth.Fi financial brand, said that Bitcoin now makes up two-thirds of its $3 billion in total assets. It also set aside another $300 million to buy more Bitcoin-related investments through options.
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Interestingly, CEO Devin Nunes said that holding Bitcoin helps protect the firm from possible discrimination by banks. He also said that these digital assets could work well with a utility token that the company plans to use across its platforms. This announcement came just days after President Trump signed the GENIUS Act into law, which set the first official rules for dollar-backed stablecoins. Indeed, the new law is expected to boost the level of confidence in digital currencies and increase their use across the U.S.
It is worth noting that Trump Media’s approach is similar to what Michael Saylor did with Strategy (MSTR), which was to turn the company into a major Bitcoin holder using money from stock and debt offerings. While this kind of strategy has caused stock prices to rise sharply for some companies, many investors remain cautious. In fact, since first announcing the plan in May, Trump Media’s stock has dropped by 25% and is now down 45% on the year.
Is DJT Stock a Good Buy?
Using TipRanks’ technical analysis tool, the indicators seem to point to a negative outlook for DJT. Indeed, the summary section pictured below shows that six indicators are Bullish, compared to six Neutral and 10 Bearish indicators.
