From Truth Social to bitcoin empire: Trump's $2 billion pivot

Since President Trump's election in November, the price of bitcoin has skyrocketed. On Election Day 2024, one bitcoin traded below $75,000. Last week, bitcoin reached an all-time high of over $123,000. (On Monday, it hovered around $118,000.)

This is not an accident. Trump has systematically used the power of the presidency to promote bitcoin and other cryptocurrencies.

On Monday, Trump Media & Technology Group (TMTG), a publicly traded company majority-owned by Trump, announced that it had acquired $2 billion in bitcoin. Trump is turning a failing media company into a bitcoin holding company. TMTG, the parent company of Truth Social, lost over $185 million on just $3.6 million in revenue in 2024.

TMTG is mimicking a strategy pioneered by Microstrategy. The company, now known as Strategy, officially sells software and other technology services, but it is really in the business of buying bitcoin. (Strategy and similar bitcoin-focused companies are valued far above their actual bitcoin holdings, for reasons that aren’t entirely clear.)

If the price of bitcoin continues to rise, the move could pay off handsomely for TMTG and Trump. The difference is that TMTG does not just have to hope bitcoin prices rise. Trump has the authority to take actions that will drive the price of bitcoin higher. If recent history is any guide, that is exactly what Trump will do.


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