Publicly traded media company Newsmax is taking significant steps to establish a digital assets treasury, primarily focused on Bitcoin and the TRUMP meme coin associated with former President Donald Trump. Following a recent board meeting, the company has been authorized to invest up to $5 million in these digital assets over the upcoming year.
CEO Christopher Ruddy expressed optimism about the initiative, highlighting Bitcoin’s growing status as a “gold standard” in cryptocurrency. He stated that adding Bitcoin to Newsmax’s reserves is a vital move for the company. Additionally, Ruddy pointed out potential value in the TRUMP coin, believing its worth could reflect the successes of Trump’s presidency thus far.
Although specifics on the funding strategy for this initiative have not been disclosed, the company is anticipated to make its first purchase “in the near future.” Market reaction to Newsmax’s announcement saw shares drop approximately 4% to $10.83 amid broader market volatility, though there was a bounce-back of more than 4% in after-hours trading.
In the wider cryptocurrency market, both Bitcoin and the TRUMP coin experienced declines. Bitcoin saw a 3% drop to around $107,709, while the TRUMP coin decreased by 2.1%, falling outside the top 100 cryptocurrencies by market capitalization. Currently, the TRUMP coin trades at approximately $5.90, which represents a staggering 92% decrease from its all-time high of $73.43 earlier in the year.
Newsmax’s venture into digital assets aligns with a broader trend among media companies affiliated with Trump. Earlier this year, Trump Media invested $2 billion in Bitcoin and related securities, positioning itself as one of the top ten largest publicly traded Bitcoin holders.
If Newsmax were to fully utilize the allocated $5 million for Bitcoin, it would be able to acquire roughly 46 BTC, thus falling outside the top 100 holders, according to BitcoinTreasuries.net. As of now, a representative for Newsmax has not responded to inquiries regarding the matter.
