Trump Media Launches Truth.Fi Financial Services, Stock Rises 15%
Trump Media and Technology Group (TMTG) announced the launch of its financial services brand, Truth.Fi, on January 29. The initiative aims to diversify cash holdings and enter the digital finance sector, causing TMTG shares to rise over 15% in premarket trading.
TMTG reported over $700 million in cash reserves as of December 31, 2024, planning to invest up to $250 million through Charles Schwab. Investment options include:
- Exchange-Traded Funds (ETFs)
- Separately Managed Accounts (SMAs)
- Bitcoin
- Other cryptocurrencies
Truth.Fi Overview
Truth.Fi is envisioned as a crypto payment solution and digital asset trading platform, complementing existing TMTG services like Truth Social and Truth+. TMTG has appointed Charles Schwab for investment custody and Yorkville Advisors as the registered investment advisor.
The launch follows Donald Trump's commitment to making the U.S. a crypto capital and introduces his memecoin, Official Trump (TRUMP), currently trading at $27.22 with a market cap of $5.47 billion.
TMTG CEO Devin Nunes emphasized the aim to support American-focused investment products and decentralized finance, stating the need for protection against censorship and privacy violations by major tech firms.
Market Impact
Analysts suggest that TMTG can reduce customer acquisition costs for Truth.Fi by utilizing the existing user base of Truth Social. The integration of financial services with social media may enhance competitiveness against traditional FinTech companies. The company plans to launch financial products this year, pending regulatory approvals.