From Nasdaq Corporation

May 27, 2025 5:48:00 PM:

Shares of Trump Media & Technology Group (NASDAQ: DJT) dropped 10.4% on Tuesday, while the S&P 500 rose 2% and the Nasdaq Composite fell 2.4%. The company announced plans to raise $2.5 billion to create one of the world’s largest Bitcoin reserves held by a public company.

Trump Media is raising $2.5 billion to create a massive Bitcoin reserve, with $1.5 billion in stock and $1 billion in convertible notes. The move is seen as a hedge against “financial discrimination” and a push for financial freedom. The company plans to hold the Bitcoin with custodial services from Anchorage Digital and Crypto.com.

Investors should be cautious as Trump Media has minimal revenue and is operating at a loss. With a market cap of nearly $5 billion and no clear path to profitability, investing in the company may not be wise. The company’s value is significantly inflated given its financial position.

The Motley Fool Stock Advisor team did not include Trump Media & Technology Group in their list of the 10 best stocks to buy now. The team’s picks have historically outperformed the market, with average returns of 957%. Investors are encouraged to consider other opportunities for potential high returns in the market.

Read more at Nasdaq: Why Trump Media Stock Plummeted Today