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Investing.com -- Trump Media & Technology Group (NASDAQ:DJT) (TMTG) announced Wednesday that it is expanding into financial services, including investment products.
Shares of the Truth Social parent company, which trades under the ticker DJT, surged more than 15% in premarket trading following the news.
The company said its board of directors has approved the launch of a new financial services and FinTech brand, Truth.Fi.
“To diversify the Company’s cash and cash-equivalent reserves of over $700 million as of December 31, 2024, the board has approved the investment of up to $250 million to be custodied by Charles Schwab (NYSE:SCHW),” the press release states.
The company said these funds may be allocated across various assets, including separately managed accounts (SMAs), exchange-traded funds (ETFs), and cryptocurrency investments such as Bitcoin.
"We look forward to launching Truth.Fi, introducing TMTG’s investment vehicles, and unlocking synergies," said Trump Media CEO and Chairman Devin Nunes.
"Truth.Fi is a natural expansion of the Truth Social movement. We began by creating a free-speech social media platform, added an ultra-fast TV streaming service, and now we’re moving into investment products and decentralized finance," he added.
Trump Media said Truth.Fi is expected to launch in 2025 as agreements are finalized, funding is set, and any required regulatory approvals are obtained.