The Trump Media & Technology Group, which deals in cryptocurrency and social media, has seen its stock value drop significantly, costing the Trump family over $5 billion as crypto values slump.
This stock, trading under the ticker DJT, is down nearly 70% for the year and experienced a 34.6% drop last month, as noted by Barron’s.
On Wednesday morning, shares decreased about 1% to $10.76, following an intraday low of $10.32 the previous day.
As per Barron’s report, President Trump has indirect ownership of around 115 million shares of this stock, which is held in a trust managed by his son, Don Jr., who also serves on the board.
At its height in mid-May 2024, the family’s stake was valued at nearly $6.5 billion, but it has since lost over $5.3 billion in worth. This drop in value aligns with a wider downturn in the cryptocurrency market.
Notably, Bitcoin prices sank below $90,000 recently, erasing earlier gains after Trump Media’s announcement about a $2 billion Bitcoin purchase in August.
Traders seem hesitant to unload risky assets, especially as expectations for an interest rate cut next month diminish.
Trump Media has yet to comment on these developments.
Truth Social and Trump Media & Technology Group were founded by Trump after his ban from major platforms like Twitter and Facebook in the aftermath of the January 6 Capitol events.
The company previously announced a merger with Digital World Acquisition Corp. in 2021, and shares peaked at $100 in 2022, as reported by Barron’s.
Interestingly, despite the declining stock, the Trump family’s cryptocurrency ventures have made hundreds of millions, according to a recent Reuters report. The Trump Organization reportedly earned over $800 million from digital asset sales in just the first half of this year.
Since taking office, Trump has aimed to position the U.S. as the “crypto capital of the world.” Over the summer, he enacted the GENIUS Act, which sets up consumer protections and aims to bolster trust in digital currencies.
Additionally, he instructed the Treasury Department not to sell tokens acquired through enforcement actions and is considering ways for the U.S. to gain more tokens.
The White House has dismissed any allegations of conflicts of interest due to the family’s ongoing involvement with cryptocurrencies. Press secretary Caroline Leavitt stated that neither Trump nor his family has engaged in any conflict of interest and will avoid such situations in the future.
