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In an effort to leverage a growing user base and the positive momentum in U.S.-led cryptocurrency and fintech development over the past month, Trump Media & Technology Group Corp. (TMTG) announced, Truth.Fi, its expansion into financial services and fintech. The company will offer a wide range of investment products and services, including customized separately managed accounts (SMAs), customized exchange-traded funds (ETFs), Bitcoin and similar cryptocurrencies or crypto-related securities, pending regulatory approvals.

Devin Nunes, TMTG’s Chairman and CEO, said, “Truth.Fi is a natural expansion of the Truth Social movement.” The company has launched a social media platform, Truth Social, and announced a web streaming service, Truth+, in October 2024. As of January 2025, Truth Social had 6.3 million active users on its platform.

Funding Trump Media

TMTG was incorporated in February 2021 after President Trump was banned from Twitter in the previous month. TMTG’s first property, Truth Social, would launch in February 2022, amidst a flurry of deal-making and financial structuring.

In October 2021, TMTG agreed to a merger with Digital World Acquisition Corporation (DWAC), a special-purpose acquisition company (SPAC) created by Shanghai-based ARC Capital. In December 2021, TMTG and DWAC announced $1 billion in committed capital via private investment in public equity (PIPE) funding to facilitate the merger and subsequent SPAC IPO.

Beset by a number of hurdles, DWAC failed to close the merger and would return $533 million of committed capital to investors in October 2023. However, by March of 2024, investors would subsequently vote for a successful merger that would value TMTG as high as $5.7 billion.

Funding Truth.Fi

TMTG announced it would fund Truth.Fi with $250 million of the company’s $700 million in cash and cash-equivalent assets. Yorkville Advisors, a Mountainside, New Jersey-based investment manager will serve as the Registered Investment Adviser for Truth.Fi’s investment vehicles, which will focus on, “investments in American growth, manufacturing, and energy companies as well as investments that strengthen the Patriot Economy.”

Yorkville Advisors

Founded in 2001, by Mark Angelo, a Rutgers University Economics graduate, Yorkville Advisors has executed transactions worth approximately $4.5 billion in over 700 companies. The firm touts its global experience investing in companies in more than 20 countries with active investments in Healthcare, Metals and Mining, Energy, Technology, and Electric Vehicles (EVs).

SPACs, commonly referred to as blank check companies, were a common financing tool used by companies in highly volatile sectors, including EVs, to raise money in the public equity markets. No stranger to risk, Yorktown has worked with a number of de-SPACs in the sector including VinFast Auto, a Vietnamese company that engaged the firm in 2023 after suffering a 90% share price decline in the span of 2 months. Other Yorkville clients in the space include Faraday Future (FFIE), Lordstown Motors (RIDE), and Canoo Inc. (GOEV), which have all filed for bankruptcy..

In July 2024, TMTG tapped Yorkville to raise $2.5 billion. Structured as a standby equity purchase agreement, TMTG registered 38 million shares of common stock, allocating 200,000 shares (worth $7.4 million at the time) to the firm as compensation for its efforts.

The SEC filing also detailed the strategic acquisition of Perception Group, creator of a new content distribution network (CDN) technology, that is presumably instrumental in the distribution of Truth Social content.

TMTG also acquired Louisiana-based WorldConnect Technologies in exchange for up to 5.1 million TMTG shares for its part in brokering the acquisition of Perception Group’s source code for $17.5 million. Of note, James E. Davison, a co-owner of the WorldConnect Technologies joint venture purchased by TMTG, has made personal political contributions of at least $2.8 million to the GOP, including $465,000 in the 2024 election cycle.

Initial Reactions

Not surprisingly, the announcement has generated significant buzz in the financial services and and fintech communities. Truth.Fi’s launch comes fresh off the heels of President Trump’s scolding of Bank of America CEO, Bryan Moynihan, at the World Economic Forum in Davos, where he claimed the bank discriminated against its conservative clients. The launch of Truth.Fi also comes at a time when much emphasis is being placed on U.S. leadership in innovating finance and fintech. During his first week in office, President Trump signed an Executive Order calling for strengthening the country’s role in digital financial technology.

Like most things associated with Trump, the move has also attracted scrutiny from regulatory bodies and industry experts, including the potential for conflicts of interest. Only time will tell. TMTG shares closed down 1.47% at $31.60 today.

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