Trump Media and Technology Group is set to separate Truth Social into a distinct public entity called SpinCo. This decision comes as the company seeks to enhance shareholder value and streamline operations in the face of evolving market conditions.
Under the proposed transaction, SpinCo will merge with Texas Ventures III. Shareholders of DJT will receive shares of this new entity prior to the company”s anticipated merger with TAE Technologies, which remains focused on developing fusion power solutions.
Despite the strategic move, DJT shares experienced a decline of approximately 2.10% following the announcement. Over the past six months, the stock has plummeted nearly 40%, highlighting the challenges facing Trump Media in the current market.
In its announcement, Trump Media elaborated on the structure of SpinCo, indicating that it is in the process of evaluating which assets will stay with the parent company. The firm aims to create “pure play companies,” each with unique strategies that are expected to foster shareholder value.
In addition to its restructuring plans, Trump Media is significantly increasing its investments in bitcoin and related assets. The company allocated $2 billion to bitcoin and securities linked to the cryptocurrency last year, a move intended to shield itself from potential bias from financial institutions.
Furthermore, Trump Media filed for a bitcoin ETF in June of last year and has also proposed a crypto blue-chip ETF encompassing Ethereum, Solana, and XRP. These filings underscore the firm”s commitment to expanding its footprint in the cryptocurrency market, though regulatory decisions on these applications remain pending.
Earlier this year, the company took steps to launch a joint Truth Social-branded bitcoin and Ethereum ETF, as well as an ETF focusing on Crypto.com“s CRO token. Additionally, Trump Media is collaborating with Crypto.com on a new digital token project, which is expected to be distributed to shareholders.
By integrating crypto infrastructure across its operations, Trump Media is positioning itself to leverage the growing interest and adoption of digital currencies while navigating the complexities of the current financial landscape.
