The firm behind Donald Trump’s social media platform has announced an initiative to distribute new cryptocurrency tokens to its shareholders, leading to a significant surge in its stock price as the year draws to a close.
Trump Media & Technology Group (TMTG), which is managed by Trump’s family, revealed on Wednesday its plans to partner with the Crypto.com exchange for this token distribution “in the near future.”
Following this announcement, TMTG’s shares, which are traded on Nasdaq, climbed over 9% in New York. Although the stock had seen a decline in recent months, it’s still approximately 60% lower than its value at the start of the year.
This new token initiative contributes to the impressive crypto profits that Trump and his family’s businesses have accumulated, which have reportedly exceeded $1 billion, partly driven by the crypto-friendly policies during his presidency, as per a Financial Times analysis from earlier this year.
Founded in 2021, TMTG primarily operates President Trump’s “Truth Social” platform and has since garnered nearly $2 billion in Bitcoin as part of its broader engagement in the cryptocurrency landscape.
Earlier in the month, the company ventured into the artificial intelligence sector, merging with TAE Technologies, a fusion energy company funded by Google, in a significant $6 billion deal aimed at leveraging nuclear power to fuel the AI boom.
TMTG noted that the newly introduced tokens are non-transferable and “cannot be exchanged for cash.”
Still, the company expressed that “a variety of rewards will be offered periodically to token holders throughout the year,” which might include promotions and discounts linked to Trump Media products.
Recently, the Trump family’s activities in cryptocurrency have intensified, evident in a Bitcoin venture supported by Eric Trump that saw a strong stock market debut in September.
TMTG has previously worked with Crypto.com on various transactions. In August, Trump’s enterprises entered a $6.4 billion agreement to acquire tokens issued by the exchange, further entrenching the company’s connections to the digital asset realm.
In the past year, Crypto.com has emerged as one of the largest contributors to organizations backing Trump, even donating $10 million to MAGA Inc., a super PAC associated with him, in February, and additionally contributing $1 million to Trump’s inauguration.
During President Joe Biden’s administration, the firm faced an investigation by the Securities and Exchange Commission, but that inquiry was closed in March.
