From Nasdaq Corporation

May 30, 2025 2:26:00 pm:

Shares of Trump Media & Technology Group (NASDAQ: DJT) have dropped 16.7% amid news of a new strategy involving Bitcoin accumulation. The company aims to raise $2.5 billion through a private deal to create the largest Bitcoin reserve held by a private company. This move comes as the S&P 500 and Nasdaq-100 indexes have seen gains.

Trump Media plans to use the raised funds to purchase Bitcoin, positioning it as a core Treasury asset. Custodial services will be provided by Anchorage Digital and Crypto.com. CEO Devin Nunes sees holding Bitcoin as a hedge against “financial discrimination” and a symbol of “financial freedom,” citing political reasons for the move.

Despite the hype, Trump Media has a market cap of nearly $5 billion with minimal sales and no clear path to profitability. The recent announcement is likely to dilute existing shareholders’ portfolios, making it a risky investment. The company’s stock is built on speculation rather than solid financial performance.

The Motley Fool Stock Advisor team has excluded Trump Media & Technology Group from its list of top 10 stocks to buy right now, citing the potential for other stocks to generate significant returns. The team’s average return of 978% outperforms the S&P 500’s 171%, emphasizing the importance of making informed investment decisions based on solid analysis.

Read more at Nasdaq: Why Trump Media Stock Crashed This Week