Trump Media & Technology Group Executives Eye Crypto Sector with New SPAC
It’s no secret that key figures within Trump Media & Technology Group (TMTG), listed on the NASDAQ under the ticker symbol DJT, view the crypto sector as a significant revenue opportunity. Evidence of this strategic direction has emerged with the filing of a registration statement by TMTG’s CEO Devin Nunes and other executives.
Nunes has filed with the SEC to raise $179 million via a Special Purpose Acquisition Company (SPAC). The stated goal of this new SPAC is to “focus search on high potential businesses based in the USA in the cryptocurrency & blockchain, data security and dual use technologies markets.”
SPACs, which gained popularity during the COVID-19 pandemic bull market, raise funds through an IPO and then merge with a private company. This allows the combined company’s shares to trade on the stock exchange.
The new SPAC’s focus on crypto and blockchain isn’t the first indication of TMTG’s interest in the sector. Former President Donald Trump, the largest shareholder in TMTG, launched his own meme coin, aptly named $TRUMP. Additionally, the Trump family endorsed World Liberty Financial, a DeFi platform, in October, earning fees from $WLFI token sales.
Currently, TMTG’s Truth Social platform struggles to generate significant revenue, reporting only $3.6 million in sales for the year ending December 31st. Taking out amortization of deferred revenue, actual billings for the year are approximately $200,000. Due to this, TMTG’s management is pursuing alternative strategies to boost revenue.
For instance, in November 2024, the Financial Times reported that Trump Media and Technology Group was in advanced talks to acquire Bakkt, a dedicated crypto exchange owned by Intercontinental Exchange. More recently, the TMTG board approved allocating up to $250 million from its cash reserves towards setting up custom Separately Managed Accounts (SMAs) and ETFs, including one focused on Bitcoin, under the Truth.Fi banner, in partnership with Charles Schwab and Yorkville advisors. Finally, Trump Media’s board has also approved a “strategic acquisition fund with select investors” to explore “opportunities to partner, merge with and/or acquire other participants in the growing America First Economy …”
While TMTG navigates these financial strategies, CEO Devin Nunes’ 2024 compensation totaled $46.9 million, significantly exceeding the company’s annual sales.
Disclaimer: This is not investment advice. The author has no position in any of the stocks mentioned, and Wccftech.com has a disclosure and ethics policy.
