Under acting CEO Kevin McGurn, Trump Media & Technology Group (TMTG), the parent company of Truth Social, is making a significant strategic change by pulling back from its cryptocurrency expansion plans.
Instead of developing and running various cryptocurrency and financial products, the company is now focusing on its core media and data businesses. This is a change from its prior strategy of using its Trump branding and public-company structure to get into the crypto treasury market.
Furthermore, TMTG, Crypto.com, and Yorkville Acquisition Corp. have canceled the Trump Media Group CRO Strategy, which would have created a publicly traded company devoted to purchasing and staking Crypto.com’s CRO token.
Citing the reasons for the same, the company noted,
Prevailing market conditions and shifting business and stakeholder priorities.
This indicates that TMTG is withdrawing from the increasingly congested crypto-treasury market.
Remarking on the same, McGurn added,
We wanted to get focused.
Is Trump Media giving up on crypto entirely?
However, the company isn’t giving up on cryptocurrency completely. Rather, it seems to be shifting toward a distribution and partnership model that would let companies like Crypto.com offer crypto products while TMTG concentrates on its media, audience, and data businesses.
Plans to incorporate prediction markets directly into Truth Social are also being retracted by TMTG. Instead, it intends to use its audience to advertise Crypto.com’s prediction-market products.
That said, the change stems from management’s desire to simplify its approach and concentrate resources on top priorities as TMTG gets ready for its impending merger with fusion-energy firm TAE Technologies.
Growing scrutiny around President Trump
This coincided with Democratic Senators Richard Blumenthal and Elizabeth Warren requesting that the SEC look into the Official Trump (TRUMP) memecoin.
According to the senators’ letter, after the TRUMP memecoin crashed by about 98%, over 1 million investors lost over $3.81 billion, while Trump and early participants made about $636 million. The difference is similar to rug-pull patterns, lawmakers said.
Additionally, Trump’s larger cryptocurrency businesses reportedly earned about $1.4 billion in 2025, which sparked calls for the CLARITY Act to include ethics provisions. Moreover, a tax-deferral clause has also been added to address the possible tax burden from a forced asset sale.
Trump Media’s crypto bet losing steam
Meanwhile, during the 2025 Bitcoin [BTC] rally, Trump Media’s BTC holdings amounted to roughly $1.456 billion, resulting in an unrealized gain of roughly $88 million. Nevertheless, the holdings experienced losses due to the subsequent decline in Bitcoin’s price.
Since then, Trump Media has lessened its exposure to Bitcoin. According to reports, the business lost roughly $145 million after selling an additional 2,628 BTC for $165.07 million.
In fact, it has locked in about $318 million in losses in 2026 by selling 7,281 BTC for $545 million at an average price of about $74,860. All in all, the company’s Bitcoin investment has resulted in losses of up to $555 million.
Final Summary
- TMTG, Crypto.com, and Yorkville Acquisition Corp. have canceled the Trump Media Group CRO Strategy.
- All this happens amidst Trump Media reducing its exposure to Bitcoin and facing mounting losses.
Be the first to comment