Simply put
- Newsmax is establishing a digital asset vault focused on Bitcoin and President Trump’s meme coin on Solana.
- The firm has been approved to spend up to $5 million on asset acquisitions over the next year.
- NMAX stock dropped by 4% during the day but saw a recovery in after-hours trading.
Newsmax, a publicly traded media company, is working on a digital asset vault that will include Bitcoin and President Trump’s meme coin, TRUMP, which is traded on the Solana network.
The board of directors has given the green light for this initiative, which involves acquiring two assets worth up to $5 million within the next year, as announced recently.
“Bitcoin is quickly becoming the gold standard of cryptocurrencies, so we feel it’s essential to add this asset to our reserves,” said Newsmax CEO Christopher Ruddy.
“We’re also looking forward to integrating Trumpcoin into our cryptocurrency portfolio. We think its value reflects President Trump’s successes, which have been quite notable,” he added.
Details on how the funding will be managed haven’t been shared, but the company intends to pursue its first strategic acquisition soon.
Today, Newsmax’s stock, traded on the New York Stock Exchange under the ticker NMAX, declined around 4% to $10.83 amidst broader market volatility. However, it bounced back by over 4% in after-hours trading.
On the same day, Bitcoin and TRUMP’s values also declined, with Bitcoin falling 3% to $107,709 and TRUMP down 2.1%. The meme coin has dropped out of the top 100 cryptocurrencies based on market capitalization.
Currently, TRUMP is priced at $5.90, down nearly 92% from its peak of $73.43 in January.
Newsmax joins Trump Media as the second media entity intending to develop a digital asset. Earlier this year, Trump Media invested $2 billion in Bitcoin and related securities, positioning itself among the leading Bitcoin holders.
According to Newsmax, even spending the entire $5 million for Bitcoin would only yield approximately 46 BTC, placing the company below the top 100 holders.
A representative from Newsmax has not yet responded to requests for comments.
