The Trump Media and Technology Group in the United States announced a partnership with a cryptocurrency exchange to award its shareholders digital tokens.
The announcement matched a slight rise on Wednesday in the company’s shares, which were up 5% as of 11:00 a.m. US Eastern Time (4:00 p.m. GMT).
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The majority of Trump Medias’ shares are owned by its namesake, US President Donald Trump, who has been a vocal advocate of cryptocurrency, particularly during his second term.
In a press release, the company explained that it would work with Singapore-based Crypto.com to provide shareholders with one digital token for every whole share they own.
There was no timetable for the plan, but Trump Media said the tokens would be available in the near future.
He added that various rewards would be offered to token holders periodically throughout the year, including perks and discounts related to Trump’s social media platform Truth Social and its affiliated streaming platform, Truth+.
We look forward to utilizing Crypto.com’s blockchain technology and improving regulatory clarity to implement this first-of-its-kind token distribution, said Devin Nunes, CEO of Trump Media, in the press release.
Crypto.com is expected to partner with Trump Media and Technology Group to distribute digital tokens to shareholders. [File: Jae C Hong/AP Photo]Building a crypto capital
Wednesday’s announcement is not Trump’s first foray into cryptocurrency, nor Trump Media’s first partnership with Crypto.com.
On the contrary, Trump described himself as a crypto president during his second term.
Part of his recent agenda has been to ease regulations and end investigations that he says have hampered the development of cryptocurrencies.
In doing so, Trump has repeatedly promised to make the United States the crypto capital of the world, echoing similar promises from other right-wing leaders, including Argentina’s Javier Milei and Salvador’s Nayib Bukele.
Crypto.com is among the companies that have benefited from this surge.
In October 2024, Crypto.com announced it had filed a lawsuit against the federal government, after the Securities and Exchange Commission (SEC) reportedly issued the company a Wells Notice, signaling the likelihood of upcoming regulatory action.
But government investigations into Crypto.com and other digital currency platforms were quickly abandoned after Trump’s second term began in January.
Trump, a Republican, described the investigations and lawsuits as an attack on innovation, and he blamed his predecessor, Democrat Joe Biden, for unfairly targeting the crypto industry.
My administration is also working to end the federal bureaucracy’s war on crypto, which was really going pretty wildly under Biden, Trump said at a roundtable of cryptocurrency executives in March, whom he praised as high-IQ people.
The same month, the Trump administration announced a strategic reserve to the US Treasury, consisting of the cryptocurrency Bitcoin, as well as a stockpile of digital assets.
The administration has taken other steps to propel cryptocurrency into the mainstream, including promoting its use in retirement accounts.
This month, Trump issued an executive order aimed at discouraging states from implementing their own restrictions on cryptocurrencies, arguing that such actions would create a complex set of rules.
But critics warn that the lack of regulation around cryptocurrencies and the sector’s reliance on loans could make investments volatile. This, in turn, could make consumers vulnerable to cratering losses.
Social media platform Truth Social is the flagship project of the Trump Media and Technology Group [File: John Minchillo/AP Photo]
Yet the digital currency industry has responded to Trump’s efforts by embracing the Republican leader, with companies donating millions of dollars to his 2025 inauguration fund.
Crypto.com was among the companies that donated to the inauguration as well as super PACs (political action committees) linked to the president.
Furthermore, Trump Media has maintained an increasingly close relationship with Crypto.com.
In August, for example, the two companies announced that Trump Media would serve as a treasury for one of Crypto.com’s assets, the digital currency Cronos.
Then, in October, Trump Media unveiled a plan with Crypto.com to create a market prediction platform called Truth Predict.
These platforms are sometimes called betting markets because they allow users to bet money on the outcome of world events, including political elections.
Even though Trump placed many of his shares in Trump Media in a revocable trust, overseen by his son Eric, he continues to benefit from the gains made by the company.
Critics have accused business leaders of trying to influence the president by supporting his family’s financial interests and businesses.
Nonetheless, Trump Media has struggled to find its footing since its launch in 2021.
Its flagship product, social media platform Truth Social, continues to lag behind its competitors, with a relatively modest number of monthly users estimated at 6 million.
In recent weeks, however, the company has sought to diversify its portfolio and create new momentum, including announcing a merger with fusion energy company TAE Technologies.
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