Trump Media & Technology Group (DJT) announced on Friday that it is considering spinning off its social media platform Truth Social into an independent publicly traded company. The ownership of the company’s cryptocurrency-related plans after the spin-off remains unclear, and company representatives have not provided further details.
Truth Social Spin-Off Structure: SpinCo and Business Retention Logic
According to Trump Media’s announcement, the core logic of the spin-off is “creating shareholder value by establishing multiple companies with distinct strategies.” The specific structure involves integrating Truth Social and related businesses into SpinCo, which will then merge with Texas Ventures III to form an independent publicly traded entity; some assets will remain under Trump Media, though the company has not disclosed the details.
After the announcement, DJT stock did not see a boost and fell about 2.10% alongside the broader market that day. Over the past six months, it has declined approximately 40%, with recent trading around $10.73.
Key Points of Trump Media’s Business Restructuring
SpinCo: Consolidates social media businesses like Truth Social, plans to merge with Texas Ventures III
Partial Retention: Some assets remain under Trump Media, specific details undisclosed
TAE Technologies Merger: The planned fusion with TAE Technologies, a nuclear fusion company, will occur before the SpinCo split
DJT Shareholder Returns: Shares of the new entity will be distributed to existing DJT shareholders prior to the merger
Cryptocurrency Strategy Uncertainty: Current Status of Bitcoin ETF and Airdrop Plans
Although the ownership of crypto-related businesses remains unclear after the spin-off, Trump Media has been very active in the crypto space over the past year. The company previously attempted to include $200 million worth of Bitcoin and Bitcoin-related securities on its balance sheet, and last year applied for Bitcoin ETFs and a blue-chip crypto ETF covering Ethereum, Solana, and XRP tokens.
This year, it further submitted joint applications for Bitcoin and Ethereum ETFs under the Truth Social brand, as well as an ETF centered on Crypto.com’s CRO token, collaborating with Crypto.com to develop a digital token planned for airdrop to DJT shareholders to promote crypto payments within its ecosystem. However, despite the deadline for broker participants to provide shareholder information passing earlier this month, the token has yet to be distributed.
Following the spin-off announcement, the fate of these crypto plans—whether they belong to SpinCo or remain with Trump Media—is entirely opaque, representing a major uncertainty for the market. Notably, Trump Media’s Bitcoin mining subsidiary, American Bitcoin, recently reported a net loss of $59.45 million in Q4, compared to a profit of $3.48 million in the same period last year, indicating that weak Bitcoin prices are materially impacting the company’s overall crypto strategy.
Frequently Asked Questions
Q: What is the main goal of Trump Media’s spin-off of Truth Social?
A: The announcement states that the spin-off aims to maximize shareholder value by creating multiple companies with independent strategic focuses. Truth Social and other social media businesses will be integrated into SpinCo and merged with Texas Ventures III, while Trump Media will focus on other ventures, including its planned merger with TAE Technologies.
Q: Are Trump Media’s Bitcoin ETF applications and Crypto.com airdrop plans affected by the spin-off?
A: It remains unclear. The company has not disclosed whether its crypto plans are assigned to SpinCo or retained by Trump Media, and representatives have not responded to inquiries. The spin-off adds significant uncertainty to the future of these plans, and investors holding DJT stock awaiting the airdrop tokens should continue to monitor upcoming announcements.
Q: How does DJT stock performance reflect market sentiment?
A: After the announcement, DJT stock fell about 2.10% on the same day, showing no immediate positive reaction. Over the past six months, the stock has declined roughly 40%, with current trading around $10.73, indicating that market confidence in the company’s overall strategic direction remains to be restored.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
FET (Artificial Superintelligence Alliance) 24-hour increase of 17.42%
Gate News reports that on March 13, according to Gate's market data, as of press time, FET (Artificial Superintelligence Alliance) is trading at $0.19, up 17.42% in the past 24 hours, reaching a high of $0.19 and a low of $0.14, with 24-hour trading volume reaching $153 million. The current market cap is approximately $423 million, an increase of $62.8 million compared to yesterday.
Artificial Superintelligence Alliance (ASI) is a decentralized artificial intelligence ecosystem alliance jointly established by Fetch.ai, SingularityNET, and CUDOS. The alliance is committed to building an open, ethical, and accessible
GateNews1h ago
XRP Today's News: Rare Bottom Signal Appears, Technical Analysis Suggests Price Reversal Approaching
According to Glassnode data, XRP exhibits two major indicator signals indicating that the price is below its fair value, and the realized profit/loss ratio is approaching 1.0, which historically suggests a possible rebound. Additionally, XRP is consolidating within a symmetrical triangle pattern, with a key resistance at $1.50 and support at $1.30, as the market is about to experience a breakout in a specific direction.
MarketWhisper1h ago
Vitalik: FLI Cashed Out Approximately $500 Million in Donated SHIB
Vitalik Buterin revealed on X platform that he donated half of SHIB and other tokens to CryptoRelief at the price peak, and the other half to FLI. The original estimate was that FLI would cash out $10 million to $25 million, but the final amount reached approximately $500 million.
GateNews1h ago
ENSO (Enso) increased by 19.34% over the past 24 hours
Gate News — On March 13, according to Gate market data, as of press time, ENSO (Enso) is trading at $1.33, up 19.34% in the last 24 hours. It reached a high of $1.34 and a low of $1.10, with 24-hour trading volume reaching $170 million. The current market cap is approximately $27.5 million, an increase of $4.45 million compared to yesterday.
Enso is the fastest on-chain application building and deployment platform. Every on-chain interaction is mapped to a shared engine, eliminating the need for manual blockchain or smart contract integration. Enso provides two core features: Actions and Shortcuts, allowing developers to abstract any isolated smart contract transaction into simple components and combine multiple Actions into reusable and shareable Shortcuts.
GateNews2h ago
Crypto market rebounds this morning, BTC touches $72,000, funding rates return to neutral
The crypto market rebounded on March 13, with Bitcoin recovering to 72,000 USD and Ethereum recovering to 2148 USD. Funding rates on major exchanges returned to neutral levels, indicating that bearish sentiment has eased. The funding rate is a mechanism that adjusts the relationship between contract prices and asset prices.
GateNews2h ago
RENDER (Render) 24-hour increase 13.77%
Gate News report: On March 13, according to Gate's market data, as of press time, RENDER (Render) is trading at $1.71, up 13.77% in the last 24 hours, reaching a high of $1.75 and a low of $1.34. The current market cap is approximately $888 million, an increase of $107 million compared to yesterday.
Render Network is the world's first decentralized GPU rendering platform designed to accelerate creative workflows. The platform leverages global idle GPU computing power to provide users with unlimited rendering capabilities at below-market costs. Render Network supports mainstream GPU rendering engines such as OctaneRender, Redshift, and Blender Cycles, while integrating R
GateNews2h ago
