Trump Media: Bitcoin Strategy Is Key Now

Summary Trump Media & Technology Group continues to struggle to generate meaningful revenue from its core social media ￰0￱ has aggressively raised capital, using much of it to pursue a Bitcoin treasury strategy and launch ETFs, but shareholder dilution is a ￰1￱ efforts to diversify into financial products and crypto ETFs may not yield significant revenue due to late entry and strong ￰2￱ limited revenue growth and a premium stock price, I maintain a Hold rating on DJT, awaiting evidence of sustainable business ￰3￱ Media & Technology Group Corp. ( DJT ) is the media and finance company associated with President Donald ￰4￱ the connections, the company struggles to make money, which doesn't bode well for the ￰5￱ that changes, it's hard to see DJT as a ￰6￱ of Previous Coverage When I wrote about DJT in February, I remarked on the large cash position it has accumulated from its SPAC merger and ATM equity ￰7￱ about $672M in cash and short-term investments at the end of Q3 2024, Screenshot from previous article (Q3 2024 Form 10Q) With almost no revenue from their underlying social media business, I opined that the cash cushion could at least stabilize things while short-term rates are higher, covering expenses while they manage to build up ￰8￱ had guided that data center assets to support operations would be operational in Q4, but with those results not yet out, their contribution would be hard to ￰9￱ no earnings and tangible book value per share well below the price at the time, I saw no case for undervaluation and rated the stock a ￰10￱ Financial Results Full-year 2024 results ultimately did not reflect much improvement in revenue from the underlying ￰11￱ Statement (2024 Form 10K) The improvement in net interest income showed that they could improve the cash flow here, despite the increase in other operating ￰12￱ Statement (Q2 2025 Form 10Q) Year-to-date results show that they have been able to derive more interest and investment income from the capital they raised, but revenue from the core business has not meaningfully ￰13￱ Sheet (Q2 2025 Form 10Q) The first two quarters grew the balance sheet through more capital raises, visible through the $934M convertible note ￰14￱ this strengthens the business in some ways, it's also been dilutive to shareholders.

Q2 2025 Form 10Q DJT therefore seems to be a company that cannot readily make revenue from its social media business and is aggressively raising capital to pursue other ￰15￱ and Crypto Shortly after I published my last article, the company announced intentions to diversify the business through strategic acquisitions, largely with a focus on launching ETFs and expanding into financial ￰16￱ idea seems to be an independent ecosystem of social media and finance (speech and money). In March, they announced a partnership with ￰17￱ in forming crypto ￰18￱ May, they announced a shift toward a Bitcoin ( BTC-USD ) treasury model, in the vein of Strategy ( MSTR ).

Most of the capital raised in the year is to be used for this ￰19￱ announcements spoke to the launch of various ETFs and expansions of their social media and streaming ￰20￱ and Valuation As Q3 results approach, that will give us time to see if these changes to the business improve revenue and earnings in a meaningful ￰21￱ the media operations, it would need to be through higher subscription or ad ￰22￱ the financial services and products, it seems like most of it would be through management fees and the like. I have doubts, ￰23￱ has been slow to generate more than a few million in revenue. I am not sure why a company started by the sitting president would struggle to make sales, other than the simple fact that not very many people truly want the product.

I don't see why ￰24￱ (name of their subsidiary) ETFs would be the product of choice for crypto investors. ETFs' Share of BTC Market Cap (CoinMarketCap. com) As it stands , about $146B of the $2T BTC market cap is held in ￰25￱ list (not all of which are purely BTC) shows how dominant just a few ETF issuers are in ￰26￱ late as the Truth BTC ETFs are, DJT would be lucky to get $500M in AUM for a 1% management fee, for about $5M in revenue. Obviously, that's not enough for them to eliminate cash ￰27￱ will likely be most important in Q3 results will be the size of their current BTC ￰28￱ like Strategy, if these continue to appreciate well compared to their cost of capital, it can create shareholder value without needing significant revenue ￰29￱ Q2 ended with a tangible book value per share of $8.24, and BTC not any higher than then, however, recent share prices above $16 are likely a ￰30￱ may be priced fairly for an improving situation, but I think there isn't undervaluation at this ￰31￱ DJT has spent 2025 trying a little bit of everything, and I suspect it will throw many things at the wall in hopes of finding what will ￰32￱ the meantime, the main hope for shareholders is that the BTC treasury strategy creates value for ￰33￱ any other clear advantages or sources of strong revenue, it's hard to see what makes DJT undervalued, and so I maintain a neutral Hold rating.