US President Donald Trump’s media company has moved forward with plans for its “first-of-its-kind” shareholder token airdrop, setting Feb. 2 as the record date to determine eligibility.
The record, or “snapshot,” date means that any individual who holds at least one share of Trump Media as a beneficial owner or registered holder on Feb. 2 will qualify to receive the non-tradable digital rewards token, the company announced Tuesday.
After the record date, Trump Media plans to work with crypto exchange Crypto.com to mint the tokens, record them on the blockchain, and hold them in custody until they are distributed to eligible shareholders.
Token may offer discounts on Trump-related products
Trump Media, which owns President Donald Trump’s Truth Social platform, first revealed plans for a shareholder digital token on Dec. 31.
The company has emphasized that the token is not a tokenized stock and does not grant shareholder rights or any claim to future company earnings. It also cannot be redeemed for cash or other financial benefits.
However, token holders may receive non-financial perks, such as periodic discounts on Trump Media products, including Truth Social, throughout the year.
The initiative forms part of a broader strategy to integrate blockchain technology into Trump Media’s ecosystem.
While the company had previously suggested an airdrop of one token per share held, it said details regarding the final allocation and distribution process are still being finalized.
Trump CEO cites regulatory guidance as key factor
Trump Media CEO and chairman Devin Nunes said regulatory guidance is influencing how the company is implementing its shareholder token initiative.
In a statement accompanying the announcement, Nunes said the company plans to use Crypto.com’s blockchain technology in a manner consistent with guidance from the US Securities and Exchange Commission.
“We look forward to leveraging Crypto.com’s blockchain technology consistent with Securities and Exchange Commission guidance to benefit our shareholders and promote transparency, including by obtaining a clear picture of bona fide beneficial ownership as of the record date,” he said.
Trump Media stock largely held by insiders
Shares of Trump Media (DJT) opened at $13.85 on Tuesday and climbed to an intraday high of $14.94, marking a gain of more than 7%. The stock later pared its gains, closing at $13.91 by the end of the trading session.
According to estimates from investor research platform Simply Wall St, Trump Media has nearly 280 million shares outstanding. Of those, more than 41% are held by individual insiders, around 32% by retail investors, and roughly 23% by institutional holders.
