The parent company of Truth Social, Trump Media and Technology Group, announced on Wednesday that its board of directors has greenlit the creation of a new financial services and FinTech brand named Truth.Fi. This news boosted the company’s stock by more than 11% in early trading sessions.
In addition to launching Truth.Fi, the board has approved an investment strategy involving up to $250 million managed through Charles Schwab. This move aims to diversify the company’s substantial cash reserves, which topped $700 million at the end of last year.
Based in Sarasota, Florida, Trump Media plans to channel these funds into a variety of investment vehicles, such as exchange-traded funds, separately managed accounts (SMAs), Bitcoin, and other cryptocurrencies.
This strategic expansion into the financial sector coincides with Donald Trump’s victory in the presidential election last November and the election of several cryptocurrency-friendly lawmakers to Congress. These events have contributed to a significant increase in the value of Bitcoin and other digital currencies.
During his presidential campaign, Trump was a vocal supporter of digital currencies, promising to make the United States the global hub for cryptocurrency.
The development of the SMAs will be undertaken in partnership with Charles Schwab, which will also offer strategic guidance on the investment and operational strategy for Truth.Fi.
The rollout of Truth.Fi’s products and services is scheduled for 2025, pending the finalization of funding levels and the receipt of all necessary regulatory approvals, according to the company.
Meanwhile, Trump Media has expanded into digital entertainment with the launch of the Truth+ Streaming service last year. However, in its third-quarter report in November, the company disclosed a $19 million loss, which was primarily attributed to legal expenses and costs associated with its streaming TV deal.
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Passionate about analyzing economic markets, Alice M. Carter joined THE NORTHERN FORUM with a mission: to make financial concepts accessible to everyone. With over 10 years of experience in economic journalism, she specializes in global economic trends and US financial policies. She firmly believes that a better understanding of the economy is the key to a more informed future.
