Trump Media, the Donald Trump-affiliated parent company behind media platform Truth Social, is planning to launch a utility token and digital wallet.
Summary
- Trump Media is planning to launch a token and digital wallet tied to its social media platform.
- The company recorded millions in losses for the year’s second quarter.
- Recent months have seen Trump Media double down on its crypto bet.
Per a recent SEC filing, the token will be part of a broader rewards system linked to the company’s streaming service. Users will be able to use the tokens to pay for subscriptions in its initial stages, with plans to expand its use across the Truth ecosystem over time.
The rollout will be supported by a digital wallet, which is also in development. Trump Media first floated the idea back in July, when it announced the beta testing of a new subscription plan called the Patriot Package.
At the time, the company said the token would be tied to monthly “gems” earned by subscribers and sought users’ contributions to design ideas. While there’s still no official launch date, the project now appears to be gaining momentum.
The utility token update came as Trump Media disclosed its latest financials, recording a $20 million net loss in the year’s second quarter. The loss was mostly due by $20.5 million in non-cash expenses, including stock-based compensation, depreciation, and legal fees.
Despite the loss, the company logged its first positive operating cash flow of $2.3 million, mainly fueled by its recently adopted crypto strategy.
Trump Media’s crypto bet
Last month, the Trump-linked company raised $2.4 billion through a private offering backed by about 50 institutional investors. It then used most of that to acquire roughly $2 billion worth of Bitcoin (BTC) and other related assets.
The purchase now makes around two-thirds of Trump Media’s $3 billion in liquid assets tied to digital assets, placing it among the top ten public holders of Bitcoin. Trump Media CEO Devin Nunes said the Bitcoin strategy is aimed at ensuring “financial freedom” and protecting the company from potential risks in traditional finance.
Meanwhile, Trump Media is also eyeing the ETF space. The company filed an application in June for an exchange-traded fund (ETF) that would jointly track Bitcoin and Ethereum, which is currently under review by the Securities and Exchange Commission (SEC).
