In a seismic shift for Trump Media & Technology Group (Nasdaq: DJT), the parent company of Truth Social, the firm announced a $2.5 billion capital raise to fund one of the largest corporate bitcoin treasury allocations in history.
The move, revealed on May 27, 2025, marks a dramatic pivot from its roots as a free-speech social media platform to a financial services and cryptocurrency powerhouse.
However, the announcement comes against a backdrop of volatile stock performance, persistent allegations of market manipulation, and a fierce battle by retail investors to defend the stock’s value against perceived suppression by institutional players.
Will DJT stock go back up from its current slip?
Lets dive deeper into it.
A Historic Bitcoin Treasury Play
Trump Media’s latest move involves raising $1.5 billion through the sale of approximately 58 million shares to around 50 institutional investors, coupled with $1 billion in convertible notes priced at a 35% premium.
The proceeds are earmarked for a massive bitcoin purchase, positioning the cryptocurrency as a core treasury asset alongside the company’s existing $759 million in cash and short-term investments.
The announcement, made as bitcoin hovers near record highs and the Bitcoin 2025 conference kicks off in Las Vegas, underscores the company’s ambition to capitalize on the cryptocurrency’s meteoric rise.
CEO Devin Nunes, a former California congressman, hailed bitcoin as an “apex instrument of financial freedom” and framed the deal as the first of many “crown jewel” acquisitions.
The company has partnered with crypto platforms Anchorage Digital and Crypto.com to provide custody for its bitcoin holdings, ensuring secure management of its new digital asset portfolio.
The Bitcoin 2025 conference, attended by Vice President JD Vance, Donald Trump Jr., Eric Trump, and crypto czar David Sacks, has further amplified President Donald Trump’s image as the “crypto president.”
The event highlights the Trump administration’s push to position the U.S. as a global leader in digital assets, with Trump recently announcing a U.S. strategic crypto reserve including bitcoin, ether, XRP, Solana, and Cardano.
Stock Volatility and Market Manipulation Allegations
Despite the bold bitcoin strategy, Trump Media’s stock fell approximately 10% following the announcement, reflecting the company’s ongoing volatility.
With a market capitalization of $5.3 billion, DJT remains a polarizing investment, having lost nearly 30% of its value in 2025 despite generating just $3.6 million in revenue and reporting a $400 million loss in 2024.
President Trump, who indirectly owns over 114 million shares through a revocable trust, holds a stake valued at roughly $2.7 billion, making it one of his most significant financial assets.
The stock’s erratic performance has fueled allegations of market manipulation, with retail investors and company insiders pointing fingers at institutional players.
Posts on X and Truth Social have long highlighted concerns about “naked” short selling and other manipulative practices targeting DJT.
In April 2024, Trump Media alerted Nasdaq to potential market manipulation, specifically calling out firms like Citadel, Virtu, and Jane Street Capital for alleged “naked” short selling, a practice where shares are sold without being borrowed, potentially driving down prices.
Further evidence of suspected manipulation surfaced in June 2024, when Freedom of Information Act (FOIA) requests revealed complaints to the Securities and Exchange Commission (SEC) about irregularities in DJT’s options pricing.
One complainant, claiming expertise in options fraud, alleged that market makers were manipulating prices to suppress the stock’s value.
Additionally, a May 2024 filing by CEO Devin Nunes requested an investigation by Florida Attorney General Ashley Moody into suspected stock manipulation, citing data implicating four market participants in coordinated efforts to depress DJT’s price.
Retail investors, particularly those active in the 39,000-member $DJT stock group on Truth Social, have rallied behind the company, adopting a “never-sell” mentality reminiscent of the GameStop and AMC meme stock frenzies.
These investors view DJT as a proxy for Trump’s political and cultural influence, with some tying its performance to his presidency.
For instance, after Trump’s October 2024 rally at Madison Square Garden, DJT shares surged 21.6%, reflecting the stock’s sensitivity to political events.
Retail Investors Fight Back
Retail investors have been vocal about their belief that DJT’s stock price is being unfairly suppressed by institutional short sellers and market makers.
On X, users have pointed to dark pool trading venues like XADF, operated by FINRA, as potential tools for hiding trades and spoofing bid/ask prices to manipulate stocks like DJT, Tesla, and others.
One user alleged that XADF’s lack of transparency enables price suppression, calling into question the role of regulators in overseeing such platforms.
The retail community’s resilience was evident during Trump’s inauguration in January 2025, when DJT shares jumped 21.5%, driven by optimism about his second term.
Investors like Whitney Patterson, a small business owner who invested a third of her retirement fund in DJT, exemplify the loyalty of the company’s retail base.
Patterson, who voted for Trump, sees her investment as a bet on his broader vision, undeterred by the stock’s wild swings.
However, critics argue that DJT’s status as a meme stock, driven by speculation rather than fundamentals, makes it vulnerable to manipulation.
Matthew Unterman of S3 Partners noted that DJT’s price movements are often disconnected from its financial performance, with retail investors’ fervor amplifying volatility.
Also Read: Retail Investors Now Fire Back At The New SEC Chair
Trump Media’s Broader Crypto Ambitions
The bitcoin treasury deal is part of Trump Media’s broader push into financial services and cryptocurrencies.
Since early 2025, the company has pursued an aggressive diversification strategy, including a deal with Crypto.com to launch exchange-traded funds (ETFs) under the Truth.Fi brand, focusing on bitcoin, Crypto.com’s native token cronos, and U.S. industries like energy and manufacturing.
The ETFs, set to launch later in 2025 pending regulatory approval, aim to tap into Crypto.com’s 140 million global users.
Additionally, Trump Media is reportedly in talks to acquire Bakkt, a cryptocurrency trading platform, and has applied to trademark six investment products, including the Truth.Fi Bitcoin Plus ETF.
The company has also allocated up to $250 million to investment accounts managed by Charles Schwab, with a focus on cryptocurrencies and U.S.-centric assets.
The Trump family’s crypto ventures extend beyond Trump Media, with Eric Trump’s American Bitcoin set to go public under the ticker ABTC and the controversial $TRUMP meme coin offering perks like a private dinner with the president.
These moves have raised concerns about conflicts of interest, particularly as Trump’s administration pushes pro-crypto policies.
Also Read: GME Stock Is Now Preparing To Squeeze Wall Street Again
Looking Ahead
Trump Media’s $2.5 billion bitcoin bet positions it as a major player in the cryptocurrency market, aligning with President Trump’s vision of making the U.S. the “crypto capital of the world.”
However, the company’s volatile stock performance and persistent allegations of market manipulation highlight the challenges it faces.
Retail investors, undeterred by losses and fueled by loyalty to Trump, continue to fight perceived suppression by institutional players, leveraging platforms like Truth Social and X to amplify their cause.
As Trump Media navigates its transformation into a financial services and crypto powerhouse, the battle between retail investors and alleged market manipulators is likely to intensify.
With Bitcoin hitting record highs and the company’s ambitious plans unfolding, DJT remains a lightning rod for controversy, speculation, and unwavering retail support.
But I’m curious to know what you think — leave your thoughts below.
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Also Read: Ripple CEO now predicts a massive trillion-dollar opportunity
About The Author
Stay strong everyone
Naked short selling at work here, combined with short and distort! This is great news..
Thanks for reading the article! The plunge in DJT stock amidst such a bold move into Bitcoin is quite surprising. Do you think the capital raise will ultimately benefit the stock, or are the market manipulation allegations too significant to overcome? I’d love to hear your thoughts on how retail investors can navigate this volatile situation.