Ask and be answered. Yesterday, I wondered if DJT’s cryptocurrency treasury still existed. Today, Dominic Basulto on The Motley Fool (TMF) answered (paywall):
Last summer, Trump Media & Technology Group (NASDAQ: DJT) — the social media company majority-owned by President Donald Trump — made headlines when it announced plans to transform itself into a Bitcoin (CRYPTO: BTC) treasury company. Trump Media now holds 12,062 Bitcoins, worth nearly $755 million at today’s prices, so it followed through on its promise.
However, that Bitcoin position is currently deep under water. Trump Media recently reported a $190 million paper loss on its crypto holdings, due largely to the fact that the price of Bitcoin has been in decline for more than 10 months now. As a result, Trump Media will pivot away from Bitcoin and back into its core business of media and advertising.
DJT is still in Bitcoin, working on getting out. Depending on how they invested in Bitcoin, it might take a while. Basulto has further thoughts on Bitcoin and suggests keeping an eye on a company named Strategy (MSTR). As TMF is a pay service these days, I shan’t quote more.
But I continue to expect the entire cryptocurrency industry to shrink back from its currently bloated position, and it could, in several years, POP! out of existence. While the industry has cultivated allies in Congress, of whom I do not keep track, and that’ll help it survive, on balance it seems the risks of using cryptocurrencies far outweigh the conveniences.
For those investors who are stubborn, DJT’s price is, as of 9:55 AM here in Minnesota, below $8/sh, and $TRUMP is at $1.40. The latter has been down as far $1.37. None of this is promising for the conventional & conservative investor, or so this guy with an opinion thinks. Remember, I’m not an investment advisor.
