Trump Media & Technology Group Corp. (DJT) closed Friday at $7.95, down approximately 8.3% for the week and hovering near its 52-week low of $7.86. The decline came even as broader U.S. equity markets posted gains, with the S&P 500 rising 0.4% for its eighth consecutive weekly advance and the Nasdaq Composite adding 0.2%.
The stock's weakness was largely attributed to the company's transfer of 2,650 bitcoin, valued at roughly $205 million, to the crypto exchange Crypto.com. A Trump Media spokesperson clarified that the move was a transfer, not a sale, but the lack of further detail left investors speculating about the company's crypto strategy and liquidity needs.
U.S. stock markets are closed for the weekend and will remain shut Monday for Memorial Day, delaying any immediate investor reaction. Trading resumes Tuesday, May 26.
Financial Results and Bitcoin Exposure
Trump Media's first-quarter earnings report revealed a net loss of $405.9 million on revenue of just $0.9 million. Of that loss, $368.7 million was attributed to unrealized losses on digital assets, reflecting the decline in bitcoin's value. The company reported holding $2.1 billion in financial assets and $17.9 million in cash from operations.
Interim CEO Kevin McGurn emphasized the company's strong balance sheet and positive cash flow, and noted ongoing efforts toward a planned merger with TAE Technologies. However, the bitcoin transfer has sharpened focus on the company's exposure to cryptocurrency volatility.
ETF Withdrawal and Analyst Skepticism
Adding to the negative sentiment, Truth Social Bitcoin ETF (B.T.) withdrew its registration for a bitcoin exchange-traded fund earlier this week. In a May 19 filing, the firm asked the SEC to pull its Form S-1 statement, stating it would not proceed with a public offering at this time. No securities had been sold.
ETF analysts were not surprised by the withdrawal. Nate Geraci, president of NovaDius Wealth Management, described the reception to the first Truth Social ETFs as “lukewarm.” Bloomberg Intelligence’s James Seyffart pointed to the “competitive landscape,” while colleague Eric Balchunas warned that fee pressure could deter investors, noting that spot bitcoin ETF fees have dropped as low as 14 basis points.
Broader Crypto Stock Pressure
Crypto-related stocks also declined Friday. Coinbase Global (COIN) fell 4.4%, Robinhood Markets (HOOD) dropped 3.0%, and Strategy (formerly MicroStrategy, MSTR) lost 3.0%. These moves aligned DJT with the sector, but the company's specific news—the bitcoin transfer and ETF withdrawal—made its decline more company-specific.
Outlook
Trump Media’s stock performance next week will likely hinge on bitcoin’s price and any clarification from the company regarding the Crypto.com transfer. A bitcoin rebound or a clear explanation that the move was purely operational could stabilize shares. Conversely, further crypto losses or evidence of a sale at depressed prices could intensify concerns that the company’s balance sheet, rather than its core social media business, is driving the stock.
