In the midst of the business difficulties faced by "Truth Social", Trump Media is strongly embracing Crypto Assets: a high-stakes gamble between business and politics?

President Trump has repeatedly reshaped his legendary persona, from real estate developer and television personality to world leader, and the movements of his business empire have always attracted attention. Now, his social media company – Trump Media & Technology Group, abbreviated as TMTG, the parent company of the ‘Truth Social’ website, is undergoing a captivating transformation: it is actively entering the Crypto Assets industry, trying to find new opportunities within it. This shift not only highlights the operational difficulties faced by Truth Social but also reveals the increasingly entangled interests between the Trump family and the Crypto Assets industry.

Operational Challenges of Truth Social: The Dual Dilemma of Traffic and Advertising Revenue

Truth Social may be Trump's online megaphone, which he uses to attack enemies, praise allies, and announce executive orders, tariffs, and ceasefire agreements. However, this social media platform that has been established for three years has struggled to achieve significant advertising revenue.

This makes Trump Media, which went public in March 2024, a company that continues to operate at a loss, with its stock price declining since its IPO. This year, Trump Media's stock price has dropped by 43%. Despite a brief period of glory in June when Truth Social saw a surge in Trump's fan count surpassing 10 million and a significant increase in daily visits, its scale remains small compared to the social media platform X owned by Trump's billionaire friend Elon Musk.

According to the digital market intelligence company Similarweb, about 80% of the traffic to the truth social media site last month was to view the president's comments. This is also one of the reasons why Trump Media has difficulty expanding its user base and attracting advertisers (other than those selling products targeted at Trump supporters). The company, headquartered in Florida and with only 29 employees, has never made significant commitments to advertising sales, and there are very few employees responsible for this task. Trump Media reported a net loss of $31 million in the first quarter of this year and has yet to turn a profit since going public.

Trump Media spokesperson Shannon Devine ( stated that the New York Times report was "a typical partisan and foolish attack article," and emphasized that Trump Media is "strictly executing our plan: building our core infrastructure and then expanding into the Patriot Economy—while accumulating about $3 billion in liquid assets." This statement seems to suggest that the shift to Crypto Assets is an important part of its "expansion into the Patriot Economy."

Trump Media's Crypto Assets Ambitions: $2.5 Billion Investment and ETF Layout

As the Truth Social business faces difficulties, Trump Media has rapidly and aggressively ventured into the Bitcoin space. In just the past few months, Trump Media has raised $2.5 billion in cash to invest in Bitcoin and is committed to launching encryption-related exchange-traded funds (ETFs) in the market.

In April this year, Trump Media reached a four-year partnership with a Singapore crypto assets exchange to launch at least three ETFs, which are planned to be traded on the New York Stock Exchange. An ETF is an investment fund that invests in specific assets (stocks, bonds, gold, or crypto assets) and trades like a stock. New ETFs typically require approval from the U.S. Securities and Exchange Commission )SEC(.

By the end of this year, investors may be able to buy and sell shares of the Truth Social Bitcoin ETF and the Truth Social Bitcoin Ethereum ETF (Ethereum is the second most popular digital asset platform following Bitcoin). On Tuesday, the company filed for a mixed cryptocurrency ETF named Truth Social Crypto Blue Chip ETF, which will invest in five different crypto assets.

According to the company's regulatory documents, Trump Media has only authorized the use of the name "Truth Social" to promote these securities. The document does not disclose any information regarding the financial compensation of Trump Media. The document also states that any marketing messages regarding the ETF will be accompanied by a disclaimer stating that Trump Media does not express any position on "the merits of investing in the fund."

Trump Media will compete with about a dozen other Bitcoin-focused ETFs, including one sponsored by BlackRock's iShares, the world's largest asset management company. "I guess they want to leverage the Trump name to compete," said Bryan Armour, director of ETF research at investment research firm Morningstar. "There's not much difference between them."

In May of this year, Trump Media announced that it raised $2.5 billion for investing in Bitcoin by selling stocks and bonds to dozens of hedge funds and Wall Street trading firms, including Jane Street Capital. This deal could ultimately make Trump Media the fourth largest publicly traded company holding Bitcoin globally. Vetle Lunde, the research director at the crypto assets company K33, stated: "Trump's connections likely played a key role in securing such a large sum of funding. This development further intertwines Trump's economic interests with the crypto assets industry."

The Interweaving of Politics and Business: The Trump Family's Crypto Assets Layout

Trump has faced criticism due to his family's increasing involvement in the encryption industry and his administration's lenient regulatory approach to digital assets. One of his first actions after taking office was to express strong support for Crypto Assets and to take control of the U.S. Securities and Exchange Commission (SEC).

Crypto Assets companies donated nearly $18 million to Trump's inauguration committee. Since Trump took office, the SEC has dismissed or closed about a dozen cases involving Crypto Assets companies.

Hilary Allen, a law professor at the Washington College of Law in the United States who specializes in the study of Crypto Assets, stated: "All of Trump's products are concerning; are they being used to curry favor with the government?"

Trump holds 115 million shares of Bitcoin stock worth about 2 billion dollars—despite the fact that at the peak of the stock, his holdings were worth nearly 6 billion dollars. Trump's shares are held by a trust fund managed by his eldest son, Donald Trump Jr., who is also a board member of Trump Media and a supporter of encryption. White House spokesperson Anna Kelly stated, "President Trump’s assets are managed by his children, and there is no conflict of interest."

Investors' Expectations and Reality: A Transformation for Survival

Some individual investors in Trump Media and regular users of Truth Social are willing to see if the shift to Crypto Assets is effective. Part-time pastor Chad Nedohin ) has been one of the biggest supporters of Trump Media. He stated that he opposes Crypto Assets for personal and religious reasons, believing that they carry a "culture of fraud." However, he admitted that the company needs to take some measures to make money and ensure that Truth Social can survive.

"Social media is not actually a money-making business," said Mr. Neidoxin, who created a popular message board on Truth Social focused on the company's future development. "This administration strongly supports Crypto Assets, so Bitcoin may rise significantly during President Trump's term."

Greg Bowden, a day trader and supporter of Trump, stated that he has sporadically bought and sold shares of Trump Media over the past year. He mentioned that the last time he sold shares of Trump Media was around the time of Trump's inauguration, but he would consider buying back in when the stock price exceeds $17. Currently, the stock price is around $19. He stated that given the increasing popularity of Crypto Assets, venturing into the Bitcoin space is strategically significant for Trump Media.

Despite some investors in Trump Media buying shares to show support for the president, Mr. Bowden has no illusions about the ultimate goal of all of Mr. Trump's business activities. He said, "Trump is doing this for money." This statement sharply points out the commercial nature behind this transformation.

Trump Media is strongly embracing Crypto Assets, which is not only a self-rescue move amid the challenges faced by its Truth Social business, but also the latest attempt by the Trump family to monetize their political influence. Whether this transformation can succeed depends not only on the overall performance of the Crypto Assets market but also tests Trump Media's ability to stand out in fierce competition. For investors, this is a high-stakes gamble filled with opportunities and risks, and for the entire Crypto Assets industry, this will also serve as another testament to the deep intertwining of politics and business.