Trump Media plans to launch a utility token through its Truth wallet, expand into ETFs with a $250M allocation, and roll out new

Trump Media and Technology Group, the parent company of Truth Social and Truth Plus, is planning to launch a new utility token as part of a broader

Trump Media and Technology Group, Inc. (NASDAQ: DJT) is planning to launch a new utility token as part of a broader expansion strategy that will also see the company enter the ETF market and add premium features to its Truth Plus subscription service.

In a letter to shareholders marking the company’s first year as a public entity, CEO Devin Nunes shared these updates and outlined the company’s key priorities for the coming year. He also expressed concern about potential stock manipulation by hedge funds and highlighted the company’s M&A plans.

Announcing the integration of cryptocurrency technology, Nunes revealed that Trump Media is developing a digital wallet named ‘Truth Wallet’ and mulling launching a utility token that will initially be used to pay for subscriptions to Truth Plus.

Over time, the token could also be used for other services across the Trump Media ecosystem, forming part of a larger rewards program. This move aligns with the company’s vision to build a self-sustainable ecosystem where users can seamlessly access and engage with various products and services.

A Strong Start, One Year In

Marking its first year as a public company, Nunes highlighted the company’s strong financial position, holding $777 million in cash with low operating costs. He believes this gives Trump Media a strong edge for growth, especially as it rolls out new premium features for Truth Plus, like longer videos, an edit button, and access to more conservative news channels and family-friendly content.

This premium tier, launched in March, offers additional features and content to paying subscribers. The company is also planning to expand into streaming services with its own infrastructure to create an “uncancellable” streaming service that will provide an alternative to mainstream platforms.

Big Investments in Finance

Meanwhile, under its financial services brand Truth.Fi, Trump Media is launching a series of ETFs and separately managed accounts with an “America-first” focus, in partnership with Yorkville America Equities and Index Technologies Group. Up to $250 million has been allocated to this venture.

These ETFs will invest in companies that contribute to the American economy and align with the values of the Trump Media community. The company aims to offer a diverse range of ETFs covering sectors such as technology, energy, and consumer staples.

The crypto ambitions have sparked concerns about potential conflicts of interest. Despite transferring his 59% stake to a trust, Trump remains linked to several crypto ventures, including World Liberty Financial, where he’s named “Chief Crypto Advocate” and profits from the company, which is mostly owned by the Trump family. His memecoin launch, Official Trump (TRUMP), just before returning to office, also drew criticism.

Nunes also expressed concern about stock manipulation, citing a hedge fund’s 6 million short positions and notifying the SEC. He added that the company is actively pursuing mergers and acquisitions to find “crown jewel” assets that align with its long-term vision.

Stock Pressure and M&A Plans

Despite the announcements, Trump Media’s stock (DJT) fell 3% on the day and is down 26% for the year, as investor interest appears to be cooling off amid broader market uncertainty.

The company’s strong cash position and new product launches are crucial for stock recovery, especially with hedge fund manipulation also a factor, according to Nunes, who has alerted the relevant authorities.

“We have also notified the SEC about a hedge fund that has sold short over 6 million shares of DJT stock and is actively manipulating the market to depress the stock price and discourage retail investors,” Nunes wrote in the letter.

He added that Trump Media is on the hunt for strategic acquisitions to support long-term growth.

“We are actively seeking out and evaluating potential M&A targets that can add significant value to our company and expand our reach in new markets. Our goal is to identify ‘crown jewel’ assets that align perfectly with our long-term vision and that can be integrated seamlessly into our existing operations.”

The company is looking for companies and brands that resonate with its values and target audience, and that can be acquired at reasonable valuations.

“We are not interested in overpaying for companies or making acquisitions that will dilute the value of our stock. We are focused on making smart, strategic moves that will drive sustainable growth and generate strong returns for our shareholders,” Nunes said.

These plans come as Trump Media faces pressure to diversify revenue streams and maintain user engagement, especially with the introduction of premium features to its subscription service.

The company’s stock has fallen sharply from all-time highs reached earlier in the year as investor enthusiasm for the social media platform wanes.

The post Trump Media to Launch Utility Token, Expand into ETFs and Truth Plus Features appeared first on Benzinga.