Truth Social's Crypto Gambit: A Risky Financial Move
A New ETF on the Block
Truth Social is making a significant leap into the cryptocurrency world, aiming to turn around its financial losses. The company has launched a new ETF featuring five major cryptocurrencies:
- Bitcoin (70%)
- Ethereum (15%)
- Solana, Cronos, and Ripple (15%)
Not Their First Crypto Rodeo
This isn't Truth Social's first foray into crypto. They've already applied for two other ETFs:
- One for Bitcoin
- Another for Bitcoin and Ethereum
These applications are still pending SEC approval. Additionally, they've allocated $250 million for custom ETFs and SMAs under their Truth.Fi brand.
Financial Woes
Despite their ambitious plans, Truth Social is facing significant financial challenges. In the first quarter of 2025:
- Revenue: $821,000
- Loss: $30 million
Growth Spurt
However, the platform is experiencing rapid growth. Daily active users have surged by 106% compared to last year, reaching 359,000 in May. Much of this growth can be attributed to the high-profile presence of President Trump, who is quite active on the platform.
Financial Moves
Truth Social has been proactive on the financial front:
- Approved a $400 million share buyback program
- Raised $2.3 billion
This capital is being directed towards a dedicated Bitcoin Treasury, a bold move that demonstrates their commitment to diversifying their income streams.
The Big Question
Is this a smart move? The crypto market is volatile but also growing. Truth Social is betting big on crypto, but only time will tell if this gamble pays off.