Trump Media Stock Plummets 70%, $5B Lost Amid Crypto Crisis

UPDATE: Trump Media & Technology Group’s stock has crashed to an all-time low, erasing over $5 billion in wealth for the Trump family as the cryptocurrency market continues its downward spiral. Shares of Trump Media, trading under the ticker DJT, have plunged nearly 70% this year alone, with a staggering 34.6% drop occurring just in the past month.

In early morning trading on Wednesday, the stock was down approximately 1%, valued at $10.76. This follows a disastrous intraday low of $10.32, marking the lowest point since fall 2021. President Trump holds around 115 million shares of the company, which are managed in a trust controlled by his son, Don Jr., a board member.

The family’s wealth, which peaked at nearly $6.5 billion in mid-May 2024, has drastically dropped by more than $5.3 billion. This decline is closely linked to a broader crypto market meltdown. Just yesterday, Bitcoin’s price dipped below $90,000 for the first time in months, erasing its gains for the year. Traders are increasingly wary of risky investments amid fading expectations for an interest-rate cut in the near future.

Trump Media’s troubles began escalating after the company announced in August the purchase of $2 billion worth of Bitcoin. As the crypto market weakens, the family has been feeling the financial strain. Despite this, the Trump family’s personal ventures in cryptocurrency have reportedly generated hundreds of millions of dollars. According to a recent Reuters report, the Trump Organization has profited over $800 million from digital asset sales in the first half of this year alone.

Trump Media & Technology Group, which operates Truth Social, was launched after Trump was banned from mainstream platforms like Twitter and Facebook following the January 6, 2021, Capitol riot. The company’s stock initially surged to $100 in 2022 after announcing a merger with Digital World Acquisition Corp.

Despite the stock’s plummet, officials maintain that the Trump family’s involvement in crypto does not present a conflict of interest. White House Press Secretary Karoline Leavitt stated,

“Neither the President nor his family have ever engaged, or will ever engage, in conflicts of interest.”

As developments continue, the financial fallout for the Trump family raises questions about the future of their business interests amid a volatile cryptocurrency landscape. Industry watchers are keeping a close eye on how these financial pressures may influence Trump’s political aspirations and business decisions moving forward.

Stay tuned for more updates on this rapidly evolving story.