Simply put
- Trump Media and Technology Group (DJT) is contemplating a separation of its social media platform, Truth Social.
- Shares in the newly formed company will be available to DJT shareholders prior to a planned merger with TAE Technologies.
- Details regarding how this will affect the company’s Bitcoin holdings and cryptocurrency operations remain uncertain.
Trump Media and Technology Group (DJT) announced on Friday that it is looking into spinning off Truth Social, a platform aimed at promoting free speech, as its own public entity.
This decision would result in Truth Social and other businesses under Trump Media becoming SpinCo, which will eventually merge with Texas Ventures III. However, certain assets and operations will still fall under Trump Media, though the specifics haven’t been disclosed.
Before the merger with TAE Technologies is confirmed, shares in this new entity will be distributed to DJT shareholders. Of note, the merger with Trump Media itself is still pending.
“The proposed transaction aims to enhance shareholder value by creating distinct operating companies, each following unique strategies,” the announcement stated.
Yet, this news didn’t immediately boost DJT shares. The stock decreased by about 2.10% today in a declining market and has dropped nearly 40% over the last six months, recently settling around $10.73.
While it seems like Trump Media’s involvement in cryptocurrency will persist alongside Truth Social, the precise plans related to cryptocurrency were not clearly communicated. A company representative has not yet responded to requests for clarification.
Last year, the company aimed to shield itself from financial institution discrimination by incorporating $2 billion in Bitcoin and related securities into its balance sheet.
Moreover, since June of last year, there’s been interest in a Bitcoin ETF and a Crypto Asset Blue Chip ETF that encompasses other tokens like Ethereum, Solana (SOL), and Ripple’s XRP.
The company is eager to enhance its offerings in virtual currency ETFs and previously filed for a combined Bitcoin and Ethereum ETF under the Truth Social name, as well as an ETF focusing on CRO, a token from Crypto.com.
Additionally, there are plans for a digital token to be distributed to Trump Media shareholders, as they work on incorporating cryptocurrency into their operations. A recent bill aimed at providing shareholder information was approved this month, but the tokens have yet to be issued.
