- Trump Media partners with Crypto.com and Yorkville to launch ETFs, shifting focus from social media to crypto financial services.
- Trump’s renewed pro-crypto stance and SEC leadership overhaul are fueling a more favorable environment for digital asset ventures.
- TMTG’s ETF push with top law firm support and 17M Yorkville shares signals long-term confidence in its financial strategy pivot.
Trump Media & Technology Group (TMTG), the parent company of Truth Social, has taken a bold leap into financial services. The firm announced a new partnership with Crypto.com and Yorkville America Digital to launch a series of exchange-traded funds (ETFs) by year-end. This move marks a shift from its struggling social media operations to potentially more lucrative financial ventures. The initiative comes as Truth Social faces mounting challenges in attracting consistent ad revenue. Consequently, TMTG aims to secure a more stable income stream by tapping into the retail investment market, especially through crypto assets.
TMTG Collaborates With Crypto.com and Yorkville Digital
Besides seeking financial diversification, Trump Media’s strategic alliance reflects a deeper integration with the crypto space. Crypto.com brings a massive user base of over 140 million to the table. Additionally, Yorkville America Digital, incorporated in Florida this month, joins the venture with seasoned investment expertise. Yorkville shares leadership ties with Yorkville Advisors, known for backing small-cap public firms.
Moreover, TMTG’s ties with Yorkville are already well-established. Last year, Trump Media secured an equity line of credit with Yorkville, exchanging discounted stock for liquidity. As of now, Yorkville holds more than 17 million TMTG shares, signaling long-term confidence in the firm’s transformation.
Trump’s Crypto Embrace and SEC Climate Shift
Mr. Trump, once a vocal crypto critic, now champions digital assets. During the last campaign, he promised a friendlier crypto policy. Hence, after his return to office, the SEC, now led by Trump-nominated Paul Atkins, swiftly ended various crypto lawsuits. Crypto.com recently disclosed that its investigation with the commission has been officially closed.
This political alignment could accelerate TMTG’s ETF approval process. With a 3-to-1 Republican majority on the SEC, crypto ventures may face fewer regulatory roadblocks. Additionally, Davis Polk & Wardwell, a top-tier law firm, will advise the partnership on product development. Currently, Trump owns 53% of TMTG stock, transferred to a trust managed by Donald Jr. That stake is now valued at $2.7 billion. Shares rose nearly 5% to $23.59 but remain 31% down year-to-date.
