Newsmax, a media outlet, has announced its intention to invest up to $5 million in Bitcoin and Trump Coin over the next year as part of its strategic plan to build a crypto reserve. This decision comes after approval from Newsmax’s Board of Directors, highlighting a significant move for the company in the cryptocurrency space.
CEO Christopher Ruddy emphasized the impressive success of Trump Coin, which has a circulating value that exceeds $1.2 billion. If Newsmax successfully acquires Trump Coin, it would be the first company listed on the NYSE to hold this digital asset. Ruddy categorized Bitcoin as the “gold standard” of cryptocurrency, reinforcing the firm’s intent to bolster its reserves with this digital currency. He stated, “We believe it would be an important company marker to add this asset to our company reserves.”
Newsmax is poised to make its initial crypto purchase shortly, although it has not disclosed specific funding strategies for this initiative. The company mentioned that any further acquisitions would depend on market conditions, operational demands, and overall strategic goals.
This initiative arrives shortly after former President Donald Trump revealed a national strategic Bitcoin reserve, which is anticipated to commence with forfeited government crypto assets and expand over time.
However, following the announcement, Newsmax’s shares experienced a nearly 4% drop on the New York Stock Exchange, trading at $10.83 amid increasing market volatility. The decline happened against a backdrop of a recent Bitcoin price fluctuation, with the cryptocurrency down 5.31% at approximately $105,227. Bitcoin had recently reached a record high of $126,000 on October 6, but has encountered challenges since experiencing a significant selloff that saw over $19 billion in liquidations. Similarly, Trump Coin faced a 6.6% decrease in value over the last 24 hours, now trading at $5.64.
As both Bitcoin and Trump Coin navigate this fluctuating market environment, Newsmax’s foray into cryptocurrency adds another layer to the evolving landscape of digital asset investment, particularly for publicly traded companies.
