Trump Media and Technology Group Corp. (NASDAQ: DJT) has announced its expansion into financial services with the launch of the financial services and fintech brand truth.fi. The company, which operates the social media platform Truth Social and the video streaming platform Truth+, revealed that its board of directors has approved a financial services and financial technology strategy. This strategy will include the investment of up to $250 million to be custodied by Charles Schwab, aimed at diversifying the company’s cash and cash-equivalent reserves of over $700 million as of December 31, 2024.
The approved investment of up to $250 million may be allocated to customized separately managed accounts (SMAs), customized exchange-traded funds (ETFs), as well as Bitcoin and similar cryptocurrencies or crypto-related securities. The SMAs will be developed in partnership with Charles Schwab, with an affiliate of Yorkville Advisors ("Yorkville") serving as the registered investment adviser for investment vehicles and financial products. These investment vehicles and financial products are expected to focus on investments in American growth, manufacturing, and energy companies, as well as investments that strengthen the patriot economy.
TMTG CEO and Chairman Devin Nunes expressed enthusiasm about the launch of truth.fi, stating that it is a natural expansion of the Truth Social movement. He emphasized that developing American-first investment vehicles is another step toward the company's goal of creating a robust ecosystem through which American patriots can protect themselves from the threats of cancellation, censorship, de-banking, and privacy violations committed by big tech and woke corporations.
The company anticipates that truth.fi products and services, including multiple investment vehicles, will be rolled out in 2025 as new agreements are consummated, funding levels are determined, and any necessary approvals by financial regulators are secured.
TMTG's cash and cash-equivalent reserves stood at over $700 million as of December 31, 2024, and the company has approved the investment of up to $250 million to be custodied by Charles Schwab. The company aims to launch truth.fi investment vehicles and unlock synergies as part of its larger strategy to diversify and expand its financial services and fintech offerings.
The expansion into financial services follows the company's operations of Truth Social, a social media platform, and Truth+, a family-friendly live TV streaming platform. The market has reacted to these announcements by moving the company's shares 7.7% to a price of $32.34. For the full picture, make sure to review Trump Media & Technology's 8-K report.
