Trump Media Raises Billions for Bitcoin, Shares Tumble
May 28 - Trump Media (NASDAQ:DJT) said it has secured $2.5 billion from institutional investors to build one of the largest bitcoin treasuries by a public company.
The financing comprises $1.5 billion in common stock and $1 billion in convertible notes, with proceeds earmarked for bitcoin purchases. Anchorage Digital and Crypto.com will custody the digital assets.
Warning! GuruFocus has detected 4 Warning Signs with DJT.
Shares of Trump Media slid about 10% on Tuesday, trimming the stock's year-to-date gains as investors weighed the pivot from social media to financial services. The company's market value stands near $5.3 billion despite reporting just $3.6 million in revenue and a $400 million loss in 2024.
The announcement comes as Bitcoin 2025, the year's premier crypto conference, unfolds in Las Vegas, where Trump's team has touted his role as the country's first crypto president. About 50 institutional subscribers have signed agreements to back the deal.
Donald Trump indirectly controls over 114 million shares through a revocable trust. Chief Executive Devin Nunes described bitcoin as a crown jewel asset and signaled further strategic acquisitions to bolster the treasury.
This move mirrors trends set by MicroStrategy (NASDAQ:MSTR) and other politically aligned firms converting corporate cash into bitcoin, underscoring the growing appeal of digital assets as a hedge against traditional banking constraints.
This article first appeared on GuruFocus.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
25 minutes ago
- Yahoo
TSMC says tariffs have some impact but AI demand robust
HSINCHU, Taiwan (Reuters) - U.S. tariffs are having some impact but demand for artificial intelligence (AI) remains strong and continues to outpace supply, the chief executive of Taiwanese chipmaker TSMC said on Tuesday. U.S. President Donald Trump's trade policies have created much uncertainty for the global chip industry and TSMC, the top producer of the world's most advanced semiconductors whose customers include Apple and Nvidia. C.C. Wei, speaking at the company's annual shareholders meeting in the northern Taiwanese city of Hsinchu, said they have not seen any changes in customer behaviour due to tariff uncertainty and the situation may become clearer in coming months. "Tariffs do have some impact on TSMC, but not directly. That's because tariffs are imposed on importers, not exporters. TSMC is an exporter. However, tariffs can lead to slightly higher prices, and when prices go up, demand may go down," he said. "If demand drops, TSMC's business could be affected. But I can assure you that AI demand has always been very strong and it's consistently outpacing supply." In April, the company, the world's largest contract chipmaker, gave a bullish outlook for the year on robust demand for AI applications. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26 minutes ago
- Yahoo
Why The Trade Desk Stock Popped 40% in May
After missing fourth-quarter estimates, The Trade Desk redeemed itself with a strong first-quarter earnings report. The stock also gained as the U.S. and China agreed to lower tariff rates. The Trade Desk has made significant investments in AI, which should set it up for success over the long term. 10 stocks we like better than The Trade Desk › Shares of The Trade Desk (NASDAQ: TTD) were soaring last month as the ad tech leader delivered better-than-expected results in its first-quarter earnings report, redeeming itself after an earlier miss, and benefited from a broader risk-on movement in the market. That included a surge on May 12 when the U.S. and China agreed to lower tariff rates. As a result, The Trade Desk stock finished May up 40%, according to data from S&P Global Market Intelligence. As you can see from the chart below, the stock popped following its May 8 earnings report and gained on the following session due to the favorable trade war news. The Trade Desk, which is the leading independent, demand-side platform in ad tech, got off to a rough start to the year after missing its own guidance for the first time in February when it reported Q4 earnings. Its Q1 earnings report reassured investors, showing that the Q4 miss was indeed a blip rather than a sign of underlying problems. In Q1, The Trade Desk's revenue jumped 25% to $616 million, easily topping estimates at $575.3 million, and management said the strategic updates it implemented in Q4 were paying off. On the bottom line, it also delivered strong results as adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $208 million were up from $162 million in the quarter a year ago. Adjusted earnings per share increased from $0.26 to $0.33, topping expectations at $0.25. The Trade Desk stock gained 19% on May 9 on the news and then added another 12% on May 12 on news that the U.S. and China were lowering their tariff rates for 90 days. Due to its exposure to advertising, The Trade Desk is sensitive to the macroeconomic climate, so calming trade tensions is a good sign for the company. Over the rest of the month, the stock was mostly flat. The Trade Desk remains an expensive stock at a price-to-earnings (P/E) ratio of 91 based on generally accepted accounting principles (GAAP), but the company looks poised for long-term growth thanks to its investments in AI and the broader growth of the digital advertising market. Looking ahead to Q2, the company expects revenue of at least $682 million, or at least 17% on adjusted EBITDA of $259 million. If it can maintain that kind of growth, the stock should move higher over the long term. Before you buy stock in The Trade Desk, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and The Trade Desk wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Jeremy Bowman has positions in The Trade Desk. The Motley Fool has positions in and recommends The Trade Desk. The Motley Fool has a disclosure policy. Why The Trade Desk Stock Popped 40% in May was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
26 minutes ago
- Yahoo
Fight over lumber tariffs could reshape future of US home building
Lumber is in the spotlight as the National Association of Home Builders (NAHB) and the U.S. Lumber Coalition disagree over what's behind the U.S. housing market slump. FOX Business correspondent Kelly Saberi reported Monday that the NAHB has pointed to tariff uncertainty and lumber prices as being partly responsible. The U.S.'s current anti-dumping and anti-subsidy duty on imported Canadian softwood lumber stands at 14.5%. It could potentially climb later in the year to nearly 35%. Canada's softwood lumber makes up roughly 85% of America's imports and almost a quarter of the U.S. supply, according to the NAHB. "I share President Trump's desire to create fair and balanced trade across our borders, certainly would bring back as much production as we can," NAHB CEO Jim Tobin said. "But until we do that, and it will take years and millions of dollars of investment, we need to make sure that we have a reliable, affordable source of lumber." Saberi reported that the U.S. Lumber Coalition "says that the price of lumber says something different about this story." Read On The Fox Business App Between May 2021 and April of this year, the random lengths framing composite price decreased 67%, she reported. It stood at $442 per 1,000 board feet as of May 23, per the NAHB. Meanwhile, the price of new homes has gone up 21%, Saberi reported. "Everything from regulatory costs to the cost of land and, quite frankly, also the cost of home builder profitability rates that have gone up, those are actually the driving forces of home affordability," U.S. Lumber Coalition executive director Zoltan van Heyningen told FOX Business. "Lumber just isn't one of them." Click Here To Read More On Fox Business The U.S. Lumber Coalition has also been critical of Canada, saying that "ongoing unfair trade practices" by its lumber industry have been "extremely harmful to U.S. lumber producers, workers, and their forest-dependent communities." John Kalabich, the owner of Acme Lumber in Chicago, told Saberi he was able to keep prices relatively flat over the past 12 months because of the duty on Canadian lumber. He has also heard from contractors that the demand for small repair work and big-ticket construction has gone down. Trump Issues Executive Orders Addressing Lumber Production, National Security Concerns Last month, the U.S. Census Bureau said single-family housing starts suffered a 2.1% decline from March to a seasonally adjusted annual rate of 927,000 in April. Sales of new single-family homes in April came in at a seasonally adjusted rate of 743,000, while sales of existing ones were 3.63 article source: Fight over lumber tariffs could reshape future of US home building
