Trump Media and Technology Group Preps to Launch New Utility Token as Part of Growth Plan

Trump Media and Technology Group, the holding company behind Truth Social and Truth Plus, is preparing to introduce a new utility token

The holding company behind social media platform Truth Social and Trump Media, is preparing to introduce a new utility token as part of a larger growth plan, CEO Devin Nunes disclosed in a letter to shareholders on Wednesday.

Announced during the company’s first year as a publicly traded company, the company is also investing in a series of exchange-traded funds (ETFs) and individually managed accounts with an “America-first” focus in partnership with Yorkville U.S. Stocks and Index Technologies Group, with up to $250 million allocated for the initiative.

These updates come amidst a backdrop of Trump’s ventures into the cryptocurrency scene, which have sparked attention and concerns over potential conflicts of interest. Having transferred his 59% stake in the company to a trust, Trump remains linked to several crypto ventures. Notably, he serves as the “Chief Crypto Advocate” for World Liberty Financial, a company majority-owned by the Trump family, where he stands to benefit from the company’s success.

Furthermore, the launch of his memecoin, Official Trump (TRUMP), ahead of his potential return to office also drew criticism.

Highlighting the company’s strong cash position with $777 million in hand and reduced operating expenses, Nunes emphasized Trump Media’s advantage for advancing its agenda as it rolls out new additions to its paid Truth Plus tier. These include video functionality, an edit button, and access to news channels with a more traditional viewpoint and content suitable for all ages.

However, despite the announcements, Trump Media’s stock (DJT) slid 3% on Wednesday and is down 26% for the year as investor interest appears to be waning amid broader market turbulence. Nunes claims this is partly due to a hedge fund’s actions with 6 million short positions, about which he has alerted the U.S. Securities and Exchange Commission (SEC). He also mentioned that the company is actively seeking mergers and acquisitions to acquire valuable assets that align with its long-term objectives.