Trump Media and Technology Group, the parent company of Truth Social, announced Wednesday that its board has approved the launch of a financial services and FinTech brand, Truth.Fi, driving its shares up more than 11% in early trading.
The company also authorized an investment of up to $250 million through Charles Schwab to diversify its cash holdings, which exceeded $700 million at the end of last year.
The Sarasota, Florida-based firm plans to allocate these funds across various investment options, including exchange-traded funds, separately managed accounts (SMAs), Bitcoin, and other cryptocurrencies. Trump Media’s expansion into financial services follows Donald Trump’s election victory in November and the rise of pro-crypto lawmakers in Congress, which contributed to a surge in Bitcoin and other cryptocurrency prices.
During his campaign, Trump pledged strong support for digital assets and aimed to position the U.S. as the “crypto capital of the planet.” The SMAs will be developed in partnership with Charles Schwab, which will provide strategic advice on Truth.Fi’s investments and strategy.
Truth.Fi products and services are expected to launch in 2025 after securing funding and obtaining necessary financial regulatory approvals. TMTG has also expanded into streaming services with the launch of Truth+ Streaming last year.
In November, the company reported a $19 million third-quarter loss, primarily due to legal fees and costs tied to its streaming platform.
