TLDR
- Newsmax to invest up to $5 million in bitcoin and Trump token within a year.
- The company expects to be the first NYSE-listed firm to purchase the Trump Coin.
- Newsmax shares rose 2.5% after the crypto treasury announcement on Friday.
- The TRUMP token trades near $5.73 with a $1.1 billion market capitalization.
Newsmax Inc. (NYSE: NMAX) saw its stock move higher on Friday after announcing plans to build a $5 million digital asset treasury. The company said it will begin purchasing bitcoin and the Official Trump (TRUMP) token as part of a new strategic reserve. This decision positions Newsmax among the first traditional media companies on the NYSE to integrate digital assets into its balance sheet.
Company to Create Digital Asset Treasury
Newsmax said late Thursday that its board approved a plan to acquire up to $5 million worth of bitcoin and the TRUMP token within the next 12 months. The purchases will be carried out in stages, depending on market trends and liquidity. The company called the initiative a Digital Asset Treasury (DAT), describing it as part of its long-term investment and reserve diversification plan.
Chief Executive Officer Christopher Ruddy said the decision reflects growing confidence in the future of cryptocurrency as a store of value. “Bitcoin is fast becoming the gold standard of cryptocurrency, and we believe it would be an important company marker to add this asset to our reserves,” Ruddy said in a statement. He added that Newsmax is also “excited to add Trump Coin,” saying its performance could reflect the success of the current U.S. administration.
Newsmax expects to begin its first round of purchases “in the near future.” Additional acquisitions will depend on operational needs, regulatory clarity, and market pricing.
Trump Token Performance and Market Context
The TRUMP token, which launched in January ahead of President Donald Trump’s inauguration, has struggled to maintain its early valuation. The token currently trades near $5.73, according to The Block’s market data, giving it a market capitalization of about $1.1 billion and a fully diluted valuation of $5.7 billion. Despite recent declines, it remains one of the more actively traded political-themed cryptocurrencies.
The broader cryptocurrency market has faced challenges this month, with bitcoin slipping below $104,000 amid weak sentiment. Analysts attribute the recent downturn to “extreme fear” among investors, driven by tightening financial conditions and declining liquidity. Even so, public companies continue to hold over $125 billion in combined crypto assets, based on data from The Block’s corporate holdings dashboard.
Market Reaction and Company Overview
Following the announcement, Newsmax shares rose about 2.5% during Friday’s session, bringing its market capitalization to roughly $1.4 billion. The increase offered a brief reprieve for shareholders after the stock fell more than 80% since its March IPO. The company went public earlier this year after raising $300 million through a Regulation A+ offering and a private preferred round.
Newsmax’s move marks a notable step for a media firm in adopting digital currencies at a treasury level. While companies like MicroStrategy and Tesla previously incorporated bitcoin into their reserves, Newsmax is believed to be the first NYSE-listed broadcaster to include a political token such as TRUMP Coin.
The company said it views this strategy as a way to align its financial operations with evolving digital trends while maintaining a cautious approach. Future updates on purchase timing and asset allocation are expected as market conditions develop.
Outlook for Digital Assets and Corporate Adoption
Corporate interest in cryptocurrency holdings continues to expand despite volatile prices. Companies are using bitcoin and other tokens as alternative reserves or diversification tools. Analysts suggest this trend could persist as firms explore new ways to manage liquidity and hedge against inflation pressures.
For Newsmax, the plan represents both a financial experiment and a branding opportunity within the digital economy. The company’s entry into the crypto space places it among a growing list of public firms testing blockchain-based assets in their corporate structures.
