Truth Social’s parent company, Trump Media and Technology Group (TMTG), has announced the launch of Truth.Fi, a financial services and FinTech brand, as it seeks to capitalize on the booming cryptocurrency market.
Key Highlights:
- Truth.Fi Launch & Market Reaction:
- TMTG’s board has approved the launch of Truth.Fi, expanding its financial services footprint.
- The announcement sent shares soaring over 11% in early trading.
- Investment Strategy:
- The board authorized a $250 million investment through Charles Schwab to diversify cash holdings.
- Assets will be allocated across ETFs, separately managed accounts (SMAs), Bitcoin, and other cryptocurrencies.
- Political & Market Context:
- The move follows Donald Trump’s return to the White House and the election of pro-crypto lawmakers.
- Trump has championed digital assets, aiming to establish the U.S. as the “crypto capital of the planet.”
- Implementation & Future Plans:
- SMAs will be developed with Charles Schwab, which will advise on investment strategy.
- Truth.Fi products and services are set to roll out in 2025, pending regulatory approvals.
- Expanding Business Ventures:
- TMTG has also entered the streaming industry with Truth+ Streaming, launched last year.
- The company reported a $19 million Q3 loss in 2023, attributed to legal fees and streaming costs.
TMTG’s move into FinTech and cryptocurrency aligns with its broader strategy of leveraging political momentum to expand its digital footprint.
