Trump Media and Technology Group (DJT) said Friday it is exploring a spinoff of Truth Social — the pro-free-speech social network closely associated with Donald Trump — into a standalone public company, a development that could reshape how the firm’s media and crypto bets are organized.
What the plan would look like
- Truth Social and certain related businesses would be carved out into a new entity dubbed “SpinCo,” which would then merge with Texas Ventures III.
- DJT says some businesses and assets would remain with the parent company, but it has not specified which ones.
- Shares in the newly formed SpinCo would be distributed to DJT shareholders before DJT completes an already-announced merger with TAE Technologies, a power-fusion firm whose tie-up with Trump Media remains pending.
Purpose and market reaction
- The company framed the move as a way to “create shareholder value through the creation of pure play companies, each with distinct strategies.”
- The announcement did not spark a rally: DJT shares slipped roughly 2.1% on the day amid broader market weakness and have fallen about 40% over the past six months, trading near $10.73.
What this means for DJT’s crypto initiatives
- The spinoff raises questions about where the firm’s crypto activities will live. Trump Media did not clarify whether crypto assets and products will stay with SpinCo or remain with the parent, and the company did not immediately respond to requests for comment.
- DJT has been an active crypto player: last year it added roughly $2 billion in Bitcoin and Bitcoin-related securities to its balance sheet, citing a desire to “protect itself from discrimination from financial institutions.”
- It has filed multiple ETF proposals — including a Bitcoin ETF (filed in June), a crypto “blue-chip” ETF that would include Ethereum, Solana (SOL) and XRP, and more recently a Truth Social-branded Bitcoin + Ethereum ETF and a CRO-focused ETF tied to Crypto.com.
- The company is also working with Crypto.com on a digital token intended for an airdrop to shareholders. Broker participants’ deadline to supply shareholder information passed earlier this month, but the token has not yet been distributed.
Why crypto watchers should care
- A formal separation of the social platform from other parts of the business could concentrate regulatory exposure, investor appetite, or crypto product development in one entity or the other — but that remains unclear until DJT discloses which assets are carved out.
- Key items to watch: official filings detailing which assets transfer to SpinCo, updates on the TAE Technologies merger, SEC filings around the ETF proposals, and any timetable for the shareholder token airdrop.
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