Shares of Trump Media & Technology Group have experienced a significant decline, dropping to all-time lows and erasing over $5 billion in wealth for the Trump family amid a broader downturn in the cryptocurrency market. The company’s stock, trading under the ticker DJT, has fallen nearly 70% this year, with a staggering 34.6% of that loss occurring in just the past month, according to Barron’s.
In early trading on Wednesday, the stock was down approximately 1%, priced at $10.76, following an intraday low of $10.32 the previous day. This represents the lowest valuation since fall 2021. The stock is held in a trust managed by Donald Trump Jr., who serves on the board, while Donald Trump indirectly owns around 115 million shares of the company.
The value of the Trump family’s holdings peaked at nearly $6.5 billion in mid-May 2024, only to suffer a decline of over $5.3 billion since then. This downturn correlates with a significant drop in cryptocurrency values. In August, Trump Media announced the acquisition of $2 billion worth of Bitcoin, yet Bitcoin prices recently dipped below $90,000, erasing gains made earlier in the year.
The current market environment has led traders to shy away from risky assets, particularly as hopes for an interest rate cut next month diminish. Trump Media has not provided comments regarding the stock’s performance or the cryptocurrency market’s impact.
After being banned from major social media platforms following the events of January 6, 2021, Trump launched Truth Social and its parent company, Trump Media & Technology Group. The company announced a merger with the blank-check firm Digital World Acquisition Corp. in 2021, which saw its stock price peak at $100 in 2022. Since that high point, the stock has faced a dramatic decline.
Despite the struggles of Trump Media, the Trump family’s other ventures in cryptocurrency have reportedly generated substantial profits. According to a Reuters report from last month, the Trump Organization has generated more than $800 million from digital asset sales in the first half of this year alone.
Since his presidency, Trump has aimed to position the United States as the “crypto capital of the world.” In the summer of 2024, he signed the GENIUS Act, which includes consumer protections aimed at fostering confidence in digital currencies. Furthermore, he directed the Treasury Department not to sell tokens seized during enforcement actions, exploring avenues for further U.S. acquisition of digital assets.
The White House has denied any conflict of interest regarding the Trump family’s significant involvement in the cryptocurrency arena. In a statement, Karoline Leavitt, White House Press Secretary, asserted that “neither the President nor his family have ever engaged, or will ever engage, in conflicts of interest.”
As the cryptocurrency market continues to fluctuate, the future of Trump Media remains uncertain, reflecting broader trends that may impact investors and stakeholders in the digital currency space.
