Trump Media Eyes Truth Social Split After Bitcoin Moves

TLDR

• Trump Media announced plans to spin off Truth Social into a separate public entity called SpinCo.
• The company said SpinCo would merge with Texas Ventures III under the proposed transaction.
• Trump Media plans to distribute shares of the new entity to DJT shareholders before its pending merger with TAE Technologies.
• The firm stated that the transaction aims to create shareholder value through focused public companies.
• DJT shares fell about 2.10% following the announcement and have declined around 40% in six months.

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Trump Media and Technology Group announced plans to separate Truth Social into a standalone public company. The company said it would create a new entity called SpinCo before merging it with Texas Ventures III. However, shares fell 2.10% as markets declined, and the stock has dropped about 40% in six months.

Trump Media Details Planned SpinCo Structure

Trump Media confirmed it is evaluating a transaction that would separate Truth Social and certain businesses. The company said SpinCo would merge with Texas Ventures III under the proposal. However, Trump Media did not specify which assets would remain with the parent company.

The company said it would distribute shares of the new entity to DJT shareholders. It plans to complete that step before its pending merger with TAE Technologies. TAE Technologies continues to pursue fusion power development while the merger remains pending.

Trump Media stated that the structure aims to create focused public companies. The company said, “The contemplated transaction is intended to create shareholder value through the creation of pure play companies, each with distinct strategies.” However, the market reaction remained muted following the announcement.

Shares of DJT traded near $10.73 after the disclosure. The stock declined about 2.10% during the trading session. It has fallen roughly 40% over the past six months.

Trump Media Expands Bitcoin and Crypto ETF Strategy

Trump Media increased its exposure to Bitcoin and related assets last year. The company allocated $2 billion to Bitcoin and Bitcoin-linked securities. It said the move would “protect itself from discrimination from financial institutions.”

The company filed for a Bitcoin ETF in June last year. It later filed for a crypto blue-chip ETF that includes Ethereum, Solana, and XRP. However, regulators have not finalized decisions on those filings.

Earlier this year, Trump Media filed for a joint Truth Social-branded Bitcoin and Ethereum ETF. It also filed for an ETF centered on Crypto.com’s CRO token. The filings signaled continued expansion of its crypto investment strategy.

Trump Media is working with Crypto.com on a digital token project. The company plans to airdrop the token to its shareholders. It seeks to integrate crypto rails across its businesses.

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