DJT Alert: Don’t Buy Trump Media Stock Unless You Love Bitcoin
Trump Media & Technology Group (NASDAQ:DJT) is a social-media business, but Trump Media stock moves with Donald Trump’s political fortunes. Plus, DJT stock will have a strong connection to cryptocurrency, and particularly Bitcoin (BTC-USD).
The Trump Media share price may not always mirror the Bitcoin price. The two assets are now connected because of Trump’s stance on Bitcoin. Cryptocurrency enthusiasts should monitor Trump Media as a potential investment.
Trump Media’s Financials Are Practically Irrelevant Now
This won’t always be the case, but for the foreseeable future, Trump Media’s financials will be largely irrelevant to Trump Media stock. It’s important to be aware of Trump Media’s financials, but don’t assume that they’ll move the share price.
Just so you know, Trump Media reported a first-quarter 2024 operating loss of $12.1 million. The company only generated $770,500 in revenue during the quarter.
Trump Media “believes it has sufficient working capital to fund operations for the foreseeable future,” so Chapter 11 probably isn’t on the near-term horizon.
Now, take those facts and store them in the back of your mind somewhere. For now, Trump Media stock will move up and down based on Trump’s political-career prospects. This will be true at least until Election Day, which is Nov. 5.
Trump Is a “Bitcoiner.” Are You?
I’m making a prediction right now. Trump Media will do something soon to establish a strong cryptocurrency connection. Maybe, the company will accept Bitcoin as payment or buy and store a hoard of Bitcoins. Who knows?
I’m predicting this because Trump made his position on Bitcoin crystal clear when he spoke at the recent Bitcoin 2024 conference.
He declared, “For too long our government has violated the cardinal rule that every Bitcoiner knows by heart: Never sell your Bitcoin.”
Moreover, Trump announced his “plan to ensure that the United States will be the crypto capital of the planet and the Bitcoin superpower of the world.”
The takeaway here is that you can’t believe in Trump Media without also believing in Trump the presidential candidate and in Bitcoin. They’re all connected now, so don’t think of them as separate entities.
Bitcoin and Trump Media Stock: An Intriguing Combination
If you’re on board with Trump as a Bitcoiner and possibly as the next president, what should you do? An interesting approach is to buy a few Trump Media & Technology Group shares and also own some Bitcoin.
Of course, you shouldn’t do any of this if you’re not a Bitcoiner like Trump is. Also, because of the potential for volatility, all position sizes should be small.
With that in mind, feel free to consider an intriguing combo of Bitcoin and Trump Media stock.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) and positions in the securities mentioned in this article.
