Trump Media & Technology Group, the parent company of Truth Social, announced plans to expand into the financial sector by introducing Truth.Fi.
New Financial Plan
According to the press release, its board of directors approved a new financial plan involving the launch of the Truth.Fi brand. This plan aims at diversifying the business and utilizing the company's $700 million reserve.
Investment Focus
TMTG plans to manage up to $250 million of its assets through Charles Schwab. The assets will be invested in separately managed accounts (SMAs), exchange-traded funds (ETFs), and cryptocurrency-based investments. SMAs will be created with the assistance of Charles Schwab, and a Yorkville Advisors subsidiary will serve as the Registered Investment Adviser.
Market Reaction and Future
Following the announcement, TMTG stock (DJT) rose by 10% from $30.04 to $35.20. It is currently priced at $32.42. The firm confirmed that Truth.Fi investment products will be rolled out this year, pending required approvals and agreements.
TMTG's venture into financial services marks a significant expansion of its operations. The new products aim to support American growth and provide additional financial options outside traditional banking systems.
