Donald J. Trump has reinvented himself many times over, going from real estate developer to TV personality to world leader.
Now his social media company, Trump Media & Technology Group, which is the parent of the president’s Truth Social site, is undergoing its own metamorphosis, becoming a major player in the crypto industry.
In just the past few months, Trump Media has raised $2.5 billion in cash to invest in Bitcoin and is working to bring crypto-related exchange traded funds, or E.T.F.s, to market.
Mr. Trump has no official position at Trump Media and does not advise it on corporate policy. But he is the company’s largest shareholder, and he and his family have become big crypto boosters over the past year.
The pivot to crypto highlights the reality of one of the president’s highest-profile business interests. Truth Social may serve as Mr. Trump’s online megaphone, which he uses to attack his enemies, praise his allies and announce executive orders, tariffs and cease-fires. But the three-year-old social media platform has struggled to generate advertising revenue.
That has made Trump Media, which went public in March 2024, a consistently money-losing company, and its stock has been shedding value since its debut. This year, shares of Trump Media are down 43 percent.
In June, Truth Social had a bit of a moment. Mr. Trump amassed more than 10 million followers. And the platform saw a big surge in daily visitors, according to Similarweb, a digital market intelligence company.
But Truth Social is still small compared with X, the social media platform owned by Elon Musk, Mr. Trump’s billionaire frenemy.
Roughly 80 percent of the traffic last month to Truth Social’s website was to view the comments from the president, according to Similarweb.
That is one reason Trump Media has struggled to expand its user base and attract advertisers beyond those selling products geared to Mr. Trump’s base. The Florida-based company with just 29 employees has also never made a big commitment to selling ads and has just a few people on staff charged with that task.
Trump Media incurred a $31 million net loss in the first quarter of this year and has yet to post a profit since going public.
Shannon Devine, a Trump Media spokeswoman, said, “The New York Times, in a typical partisan and brainless hit piece that reads like it was written by an A.I. chatbot, fails to note that Trump Media is rigorously fulfilling our plan: build up our core infrastructure, then expand throughout the patriot economy — while amassing around $3 billion in liquid assets.”
The company’s move into Bitcoin has been fast and furious.
In April, Trump Media entered into a four-year partnership with Crypto.com, a Singaporean-based cryptocurrency exchange, to launch at least three E.T.F.s, which are slated to trade on the New York Stock Exchange.
An E.T.F. is an investment fund that invests in a particular asset — stocks, bonds, gold or crypto — and trades like a stock. New E.T.F.s normally need to be approved by the Securities and Exchange Commission.
By year’s end, investors may be able to buy and sell shares of Truth Social Bitcoin E.T.F. and Truth Social Bitcoin Ethereum E.T.F. (Ethereum is the platform behind the second-most-popular digital asset after Bitcoin.) On Tuesday, the company filed for a blended crypto E.T.F. called Truth Social Crypto Blue Chip E.T.F., which will invest in five different crypto currencies.
Trump Media is just licensing the Truth Social name to promote the securities, according to a company regulatory filing. The filing does not disclose any information about financial remuneration to Trump Media.
The filing also says any marketing information for the E.T.F.s will carry a disclaimer that says Trump Media does not take a position “regarding the advisability of investing in this fund.”
Trump Media will be competing with about a dozen other Bitcoin-focused E.T.F.s, including one sponsored by iShares, a division of BlackRock, the world’s largest asset management firm.
“My guess is they look to compete based on the Trump name,” said Bryan Armour, the director of E.T.F. research with Morningstar, an investment research firm. “There’s not much to distinguish them.”
In May, Trump Media said it had raised $2.5 billion to invest in Bitcoin by selling stocks and bonds to dozens of hedge funds and the Wall Street trading firm Jane Street Capital. The deal could eventually make Trump Media the fourth-largest public company to hold Bitcoin in the world.
“Trump’s connections have likely played a critical role in securing such significant funding,” said Vetle Lunde, the head of research for K33, a crypto firm. “This development further entangles Trump’s financial interests with the crypto sector.”
Mr. Trump has drawn criticism over his family’s deepening involvement with the crypto industry and the light-touch regulatory approach to digital assets adopted by his administration. One of his first steps as president was to signal his strong support for crypto and to rein in the S.E.C.
Crypto companies donated nearly $18 million to Mr. Trump’s inaugural committee. The corporate parent of Crypto.com, for instance, gave $1 million to the inaugural committee.
And in March, Crypto.com said the S.E.C. had notified it that an investigation into the platform’s activities had been closed. In all, the S.E.C. has dismissed or closed about a dozen matters involving crypto companies since Mr. Trump was sworn into office.
Crypto.com representatives did not return requests for comment.
“The concern you come back to with all Trump products are whether they are being used as a way to curry favor with the administration,” said Hilary Allen, a professor of law at the American University Washington College of Law who has specialized in crypto assets.
Mr. Trump’s 115 million shares are worth about $2 billion — though at the stock’s peak his stake was worth nearly $6 billion. Mr. Trump’s shares are held in a trust managed by his eldest son, Donald Trump Jr., who is a Trump Media board member and crypto proponent himself.
“President Trump’s assets are in a trust managed by his children,” said Anna Kelly, a White House spokeswoman. “There are no conflicts of interest.”
Some individual investors in Trump Media and regular Truth Social users are open to seeing if the shift to crypto works.
Chad Nedohin, a part-time pastor who has been one of Trump Media’s biggest proponents, said he had personal and religious objections to crypto, which he said had a “scammy culture.” But he recognizes the company needs to do something to make money and enable Truth Social to survive.
“Social media is not actually a profitable business,” said Mr. Nedohin, who started a popular message board on Truth Social that was focused on the company’s prospects. “This administration is extremely pro-cryptocurrency, and thus Bitcoin is likely to rise significantly during President Trump’s term.”
Greg Bowden, a supporter of Mr. Trump and a day trader, said he had bought and sold Trump Media shares on and off over the past year. He said he had last sold Trump Media shares around the time of Mr. Trump’s inauguration, but would look to get back into it when it gets over $17. It’s currently trading around $19.
He said moving into Bitcoin made sense strategically for Trump Media, given the growing popularity of crypto.
While some investors in Trump Media are buying in as a show of support for the president, Mr. Bowden has no illusions about Mr. Trump’s ultimate goals when it comes to all of his business ventures.
“Trump’s in it for the money,” he said.
Kenneth P. Vogel contributed reporting.
Matthew Goldstein is a Times reporter who covers Wall Street and white-collar crime and housing issues.
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