Trump Media stock surges on fintech expansion plans, pact with Schwab

Published 29/01/2025, 14:36
© Reuters.

Investing.com -- Shares of Trump Media and Technology Group Corp. (Nasdaq: DJT) soared 15% following the company’s announcement of its expansion into financial services. The move is seen as a strategic diversification, leveraging the company’s substantial cash reserves to break into the fintech space.

In a press release, TMTG, known for operating the social media platform Truth Social and video streaming platform Truth+, disclosed its board of directors’ approval of a financial services and financial technology strategy. This strategy includes the launch of a new financial services and FinTech brand named Truth.Fi.

The company plans to invest up to $250 million of its cash reserves, which exceeded $700 million as of December 31, 2024. The investment will be custodied by Charles Schwab (NYSE:SCHW) and may include customized separately managed accounts (SMAs), exchange-traded funds (ETFs), as well as Bitcoin and other crypto-related securities.

TMTG’s CEO and Chairman Devin Nunes expressed enthusiasm for the initiative, stating, "We look forward to launching Truth.Fi, introducing TMTG’s investment vehicles, and unlocking synergies. Truth.Fi is a natural expansion of the Truth Social movement." He outlined the company’s vision to develop investment vehicles that align with the ’American First’ principle and provide a safeguard against the perceived threats of cancellation and censorship by Big Tech and ’woke corporations.’

The company anticipates rolling out Truth.Fi products and services, including multiple investment vehicles, in 2025. This timeline is contingent upon finalizing new agreements, determining funding levels, and obtaining any necessary regulatory approvals.

TMTG’s mission has been to provide an alternative to Big Tech platforms, emphasizing free speech and less restrictive content moderation. With the addition of Truth.Fi, the company aims to extend its reach into the financial sector, potentially tapping into a market of users seeking investment options that resonate with TMTG’s ideological stance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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