Trump Media Stock Tanked Today

Today I saw that the stock price for Trump Media & Technology Group (DJT) fell a lot, it dropped more than 10% by the end of the day. This happened while the S&P 500 went up and the Nasdaq went down, so it isn’t just because the whole market is bad, something truly special is happening with this company.

Trump Media said it wants to raise $2.5 billion to buy a lot of Bitcoin. They want to have one of the biggest Bitcoin savings for any public company and are hoping this will make the company worth more money. They plan to buy a lot of Bitcoin and use companies such as Anchorage Digital and Crypto.com to keep it safe. They also announced this at the same time as the big Bitcoin 2025 meeting in Las Vegas.

The CEO, Devin Nunes, said this is to protect the company from being treated unfairly with money and he called Bitcoin the best tool for money freedom.

But honestly, I think this is really risky.

Trump Media doesn’t make much money because looking at their Last quarter, it only made $821,000 but lost almost $32 million according to an article I read on coindesk.com. Still, the company is worth almost $5 billion though.

From the way I see it, unless the company has a clear way to start making real money, that number seems crazy to me. Buying a lot of Bitcoin when it’s already expensive doesn’t make me feel confident about this plan. It looks like they are trying to distract people from the bigger problems at the company.

Personally, I would not buy this stock because their betting on hype, and Bitcoin isn’t the same as having a real business plan. I would be very careful before investing.

Anyways remember I’m not a financial advisor, so I’m not telling you what to do.

Posted Using INLEO