Trump media stocks plummet on plans to raise billions to invest in bitcoin

June 21, 2025 | New York – Shares of Trump Media & Technology Group (TMTG) nosedived this week after the company unveiled an unexpected strategic pivot involving multi-billion-dollar investments in Bitcoin and other crypto-related assets. Investors reacted with skepticism and concern, sending the stock down by over 24% in just two trading sessions.

The dramatic plunge followed a statement from TMTG, the parent company of social media platform Truth Social, that it plans to raise up to $4 billion through a combination of debt and equity offerings to fund the massive crypto push. The move marks a radical departure from TMTG’s original focus on conservative media and social networking.

The Announcement That Shook the Market

The company’s press release stated that it aims to become “a trailblazing media and digital asset powerhouse,” adding that Bitcoin will serve as a “cornerstone of long-term treasury strategy.” TMTG also noted intentions to build infrastructure around blockchain-based streaming, tokenized content rights, and a crypto-rewards ecosystem for user engagement.

The announcement included an ambitious target to hold up to $2.5 billion in Bitcoin reserves, mirroring a strategy previously employed by companies like MicroStrategy, but on a larger scale relative to TMTG’s market size.

Investor Confidence Cracks

Market reaction was swift and negative. TMTG stock, which trades under the ticker DJT, fell from $44 to $33.20 on the Nasdaq within 48 hours, wiping out billions in market capitalization. Trading volumes surged as institutional investors reportedly exited their positions.

“This pivot feels speculative at best, reckless at worst,” said Laura Cheng, senior equity strategist at Evercrest Capital. “You can’t simply turn a politically-driven media brand into a crypto hedge fund overnight without raising serious questions about governance, vision, and long-term sustainability.”

TMTG’s high volatility has been well-documented since its SPAC merger in 2024, but this latest turn has deepened doubts about management’s priorities and the firm’s operational future.

Crypto Market Cheers While Wall Street Winces

Interestingly, the announcement was met with applause from segments of the crypto community, which viewed it as a major vote of confidence in Bitcoin’s institutional adoption. Bitcoin itself jumped 3.8% following the news, briefly crossing the $78,000 mark before correcting slightly.

But Wall Street analysts remain unconvinced.

“There's a massive mismatch here between shareholder expectations and this new crypto-focused roadmap,” said Alan Gentry, a tech media analyst at RBC Wealth. “Trump Media was pitched as a conservative counter to Big Tech censorship. Investors didn’t sign up for a high-risk crypto investment vehicle.”

TMTG’s Justification and Strategic Vision

In a follow-up video posted on Truth Social, Donald Trump Jr., who has recently taken a more active role in TMTG’s public messaging, stated:

“Bitcoin is freedom. We want to be on the side of history that builds the new financial frontier. TMTG is not just a media company—it’s a liberty movement.”

Company executives argue that the media landscape is undergoing fundamental changes, and the convergence of blockchain and digital content will define the next decade.

Regulatory and Legal Headwinds Ahead?

Analysts also flagged potential regulatory risks, particularly around large crypto holdings by a politically affiliated firm. The U.S. Securities and Exchange Commission (SEC) and Financial Crimes Enforcement Network (FinCEN) may scrutinize the capital-raising mechanisms and TMTG’s eventual crypto-related products or platforms.

Further complicating matters, ongoing investigations into Truth Social’s user data practices and campaign financing links could intensify under the new business model.

“It’s one thing for MicroStrategy to load up on Bitcoin,” remarked Janice Romero, partner at Monroe & Ellis LLP. “It’s quite another when it involves a politically charged platform with direct ties to a presidential candidate.”

Retail Traders Left Holding the Bag?

Retail investors, many of whom are Trump supporters, were instrumental in driving TMTG’s shares higher earlier this year. Now, some are expressing disillusionment as the stock falters.

“I invested because I believed in the message—not because I wanted to speculate on crypto,” wrote one user on Reddit’s TruthSocialInvestors forum. “Feels like we got rugged.”

The Road Ahead: Volatility Likely to Continue

With no clear timeline or execution plan for the Bitcoin investment or new digital initiatives, markets are expected to remain volatile. Analysts anticipate short-term downside unless the company clarifies its balance sheet implications and provides transparency about its funding structure.

“We need to see if this is just an ideological flex or a well-thought-out strategic transformation,” said Gentry. “Either way, DJT shareholders are in for a rollercoaster.”

Investor Outlook

For now, cautious optimism from crypto bulls is being overshadowed by skepticism from traditional investors. Most brokerage firms have either downgraded or placed TMTG stock under review, and no new buy ratings have been issued since the announcement.

Unless TMTG can demonstrate a coherent integration strategy and manage the regulatory landscape effectively, analysts warn that the stock may face further downside in the coming weeks.