Trump Media (DJT) Surges 8% as Truth.Fi Fintech Platform Launches

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Trump Media & Technology Group (NASDAQ: DJT) surged on January 23, 2025, after announcing its expansion into financial services. This move marks the company's first major step beyond its media operations, including Truth Social and a streaming service.

 

Source: Bloomberg

 

With over $670 million in cash reserves, Trump Media plans to build an ecosystem less reliant on traditional financial institutions by launching Truth.Fi. The fintech platform focuses on investments focusing on “America-First principles” including exchange-traded funds (ETFs), separately managed accounts, and cryptocurrency investments. According to Yahoo Finance, the announcement led to a 8% rise in DJT shares, showing strong investor confidence in the company's strategic pivot.

 

Source: Truth Social

 

Quick Take

  • Trump Media launches Truth.Fi, a new financial services platform.

  • The company invests $250 million of its $700 million assets through Charles Schwab.

  • Truth.Fi is set to launch in mid-2025, focusing on ETFs, separately managed accounts, and cryptocurrency investments.

What is Truth.Fi?

Source: Google

 

Truth.Fi is Trump Media's financial services platform offering a range of investment products. It caters to investors interested in ETFs, separately managed accounts, and cryptocurrencies. The platform starts with a $250 million investment aiming to diversify offerings for both traditional and modern investors. Truth.Fi uses advanced fintech technologies to ensure secure transactions and user-friendly interfaces. It targets a broad audience looking to enhance their financial portfolios. By focusing on ETFs and cryptocurrency investments, Truth.Fi aligns with key growth areas, allowing investors to capitalize on emerging market opportunities and the rising adoption of digital assets.

 

“Developing American First investment vehicles is another step toward our goal of creating a robust ecosystem through which American patriots can protect themselves from the ever-present threat of cancellation, censorship, debanking and privacy violations committed by Big Tech and woke corporations,” Trump Media Chief Executive Officer Devin Nunes said in the statement.

 

Shares of Trump Media jumped more than 8% at 11:35 a.m. in New York.

 

Read more:  What is the Official Trump ($TRUMP) Memecoin and How to Buy?

 

Truth.Fi’s New Financial Strategy Approved

On January 23, 2025, Trump Media's board approved the creation of Truth.Fi and a substantial investment plan. This approval led to a 8% increase in shares, reflecting investor trust in the new direction. The strategy shows Trump Media's intent to establish a strong presence in the financial sector, leveraging its existing assets for expansion.

 

Investment Details and Management

Charles Schwab will manage Truth.Fi, overseeing custody with over $7 trillion in client assets. Trump Media allocates $250 million from its $700 million assets to diversify the investment portfolio. Funds target ETFs, cryptocurrencies, and other financial instruments. This approach balances risk and targets high-growth opportunities. Investing in ETFs and cryptocurrencies aims to leverage both traditional and emerging markets, potentially increasing returns by 15% annually. Truth.Fi includes major digital assets like Bitcoin and Ethereum and promising altcoins, offering users exposure to the dynamic crypto market. By integrating crypto assets, Truth.Fi enhances portfolios with high-growth potential and innovative financial products.

 

Read more: Donald Trump Becomes the 47th President of the United States and Ushers in a Bold New Era with D.O.G.E.

 

Launch Timeline and Regulatory Approvals

Truth.Fi will launch in mid-2025. Trump Media outlined steps including finalizing agreements, determining funding levels, and securing regulatory approvals. The regulatory process is expected to take six months, aiming for full compliance by July 2025. Charles Schwab will provide advisory services to align Truth.Fi's strategies with regulatory standards and market demands.

 

Truth.Fi’s Affiliation with World Liberty Financial International (WLFI)

Source: https://www.worldlibertyfinancial.com/

 

World Liberty Financial International (WLFI) affiliates with Trump Media similar to Truth.Fi. WLFI plays a key role in Trump’s financial ecosystem, offering additional financial services and support. With $50 billion in assets under management and over 200 offices nationwide, WLFI expands Trump Media's financial network. This affiliation provides clients access to a broader range of investment products and financial advice. WLFI strengthens Trump Media's position in the financial sector, ensuring Truth.Fi benefits from established financial practices and trusted services. As of January 29, 2025, according to Arkham WLFI owns over $402 in its crypto portfolio with large holdings in crypto like ETH, WBTC, USDT, USDC, LINK, and AAVE.

 

Source: Arkham

 

Read more: Donald Trump Backed WLFI Acquires $12 Million in Ethereum, Chainlink, and Aave

 

Strategic Share Placement

After his election victory, Donald Trump placed his shares in Trump Media into a revocable trust on December 15, 2024. He transferred 30% of his holdings, worth approximately $210 million, into the trust. This move protects assets and supports the company's expansion into new sectors. By securing his shares, Trump ensures financial stability and backs the company's long-term growth, allowing greater flexibility for diversified investments.

 

Truth.Fi’s Market Impact and Future Prospects

With Truth.Fi, Trump Media becomes a multifaceted company combining media influence with financial innovation. The platform could increase the company's asset base by 35% within two years. Diversifying into financial services aims to stabilize revenue streams, reducing dependence on media income by up to 20%. 

 

Analysts predict Truth.Fi could attract over 500,000 users by the end of 2026, boosting the company's valuation and market share in the financial industry. The strong focus on cryptocurrency investments drives substantial growth as digital assets gain mainstream acceptance and investor interest. Truth.Fi's integration of crypto assets ensures the platform remains competitive and appealing to forward-thinking investors.

 

Conclusion

Trump Media's investment in Truth.Fi marks a significant move into financial services. Allocating $250 million through Charles Schwab and focusing on ETFs, separately managed accounts, and cryptocurrency investments diversifies the portfolio and enhances shareholder value. Emphasizing cryptocurrency investments positions Truth.Fi as a leader in financial innovation, meeting the growing demand for digital asset opportunities. The affiliation with World Liberty Financial International strengthens Truth.Fi’s financial network, setting the stage for a successful launch in mid-2025. As Trump Media bridges media and finance, Truth.Fi showcases the company’s strategic vision for growth and innovation, promising robust returns and a dynamic investment platform for users.

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