Is Trump Media Stock a Buy After $2.5 Billion Bitcoin Treasury Deal?
CEO Devin Nunes made it clear this is a strategic move for the company, calling Bitcoin (BTCUSD) a key tool for financial freedom and saying the treasury is meant to help protect Trump Media from what he sees as unfair treatment by banks. Following the announcement, DJT stock fell more than 10% on May 27.
Meanwhile, Bitcoin (BTCUSD) has pulled back from its newly set all-time high of $111,946, with more companies than ever adding it to their war chests. Public companies added 16.1% more Bitcoin in early 2025, and now hold almost 688,000 BTC worth about $57 billion, as 12 new firms started holding Bitcoin for the first time.
With all this in mind, investors must consider whether Trump Media's significant Bitcoin initiative will improve its struggling stock or merely increase risks while its core business remains unsteady. Let's find out.
Dissecting DJT's Financial Health
Trump Media & Technology Group (DJT) operates Truth Social, the streaming platform Truth+, and the new fintech brand Truth.Fi, positioning itself at the intersection of media, technology, and digital finance. The stock shows a YTD performance of -37.33%, a 52-week decline of -57.2%, and trades at $21.33 as of May 30.
On the valuation front, Trump Media commands a market capitalization of $4.59 billion and an enterprise value of $4.43 billion. Profitability metrics remain under pressure, with a return-on-equity of -14.17%, and return-on-assets of -13.76%. In 2024, the company reported negative net income of $400,000.
The company's first-quarter results, filed with the SEC, reveal a mixed financial picture. Trump Media ended March with $759 million in cash and short-term investments, a strong liquidity position that management believes will support aggressive expansion, including further diversification into fintech and financial services, the launch of Truth.Fi, and potential mergers and acquisitions. CEO Nunes underscored the importance of this robust balance sheet, noting it 'fully enables us to pursue all our expansion plans.'
Despite this cash cushion, the quarter was not without challenges. Operating cash outflow was $9.7 million, with combined interest income and revenues totaling $8.8 million. The company faced $10.9 million in legal fees, mostly tied to the lengthy SPAC merger completed in March 2024, alongside $19.6 million in non-cash expenses for stock-based compensation, depreciation, and amortization.
These factors contributed to a GAAP net loss of $31.7 million and an operating loss of $39.5 million. The most recent earnings per share stood at -$0.14 for the quarter ended March 31, with revenue reaching just $820,000.
Unpacking DJT's Growth Ambitions
Trump Media & Technology Group is making a decisive leap from social media into the financial arena with its landmark $2.5 billion capital raise aimed at creating one of the largest Bitcoin treasuries held by a public company. The deal involves issuing $1.5 billion in common stock and $1 billion in zero-coupon convertible senior secured notes to roughly 50 institutional investors.
This infusion of capital is intended to build a substantial Bitcoin reserve, marking a strategic pivot for Trump Media as it seeks to evolve into a holding company focused on acquiring 'crown jewel' assets aligned with America First principles, per management. Custody for this Bitcoin treasury will be managed by Crypto.com and Anchorage Digital, two leading names in crypto security and custody.
This move follows a significant corporate change: on May 1, Trump Media reincorporated from Delaware to Florida, a shift praised by Nunes for Florida's 'pro-business orientation and respect for the rule of law.' The company's board has also greenlit a broader financial services and fintech strategy, centered around the launch of Truth.Fi, a new brand designed to offer a range of investment products. To diversify its cash reserves, which stood at over $700 million as of December 31, 2024, Trump Media plans to invest up to $250 million in separately managed accounts, customized ETFs, and crypto-related securities custodied by Charles Schwab (SCHW).
Further expanding its fintech footprint, Trump Media has partnered with Crypto.com and Yorkville America Digital to launch a series of ETFs and exchange-traded products (ETPs) under the Truth.Fi brand. These funds will focus on digital assets and 'Made in America' securities spanning industries like energy. Subject to regulatory approval, the ETFs are expected to launch later this year and be accessible internationally, including in the U.S., Europe, and Asia, via Crypto.com's broker-dealer, Foris Capital US LLC. Davis Polk & Wardwell LLP is advising on the product development.
Analyst Caution on DJT's Crypto Ambitions
Analyst opinion on DJT's crypto ambitions is limited and generally cautious, with little to no bullish coverage or new 'Buy' recommendations following the Bitcoin treasury announcement. From a Wall Street pro, it's clear that Trump Media is widely viewed as a high-risk, high-volatility stock, more appealing to traders than to traditional investors.
The absence of strong analyst backing is notable; even after the company's bold pivot, there's no evidence of a significant shift toward positive sentiment. Trump Media's own statements acknowledge inherent risks, noting that 'we cannot assure you that we will achieve or realize these plans.' That cautious language, combined with the lack of analyst enthusiasm, suggests that while the move is ambitious, it hasn't yet convinced the market that DJT is a solid buy.
Conclusion
So, is Trump Media stock a buy after its $2.5 billion Bitcoin treasury deal? Right now, it's a high-stakes gamble, not a sure winner. The company's big moves are impressive, but analysts and the market aren't convinced it's ready for mainstream investment. Personally, I think shares are likely to stay volatile, maybe with some wild swings higher, but just as likely to drop if things don't pan out.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
15 minutes ago
- Globe and Mail
Is C3.ai Stock a Buy?
Key Points business has benefited from organizations rushing to adopt AI solutions, such as the U.S. Air Force. The company reached record revenue in its fiscal fourth quarter, and forecasts more sales growth ahead. is not profitable, and a change in CEO is on the horizon. 10 stocks we like better than › Artificial intelligence (AI) stocks have been hot, and many experienced strong growth in 2025 alone. For example, this year, AI luminaries Nvidia and Broadcom saw shares soar more than 30% and 26%, respectively, through July 28. But one lackluster AI stock has been (NYSE: AI). Its shares are down about 25% this year through July 28. Could the price drop signal an opportunity to scoop up shares at a discount? After all, the global AI market is forecast to expand from $244 billion in 2025 to $1 trillion by 2031, providing a tailwind for business. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » The reality is that evaluating whether to purchase its stock requires digging into the company. Let's delve into to help assess if it's a sound investment for the long run. A look at business is an enterprise AI applications business servicing the needs of corporate and government organizations. Its customers include the U.S. Department of Defense, Dow Inc., and ExxonMobil. The company built a network of partnerships to assist in selling its solutions, which includes Microsoft and energy giant Baker Hughes. These alliances resulted in partners closing 73% of the customer agreements signed in 2025 fiscal year, ended April 30. business model translated into record revenue of $108.7 million, a 26% year-over-year increase, in its fiscal fourth quarter. For the full year, sales grew 25% year over year to $389.1 million. The company's offerings have proven popular with customers. In May, the U.S. Air Force expanded its contract with from $100 million to $450 million to supply predictive analytics that proactively identify aircraft maintenance needs. In June, Univation Technologies, a Dow subsidiary, adopted predictive maintenance capabilities to deliver to its petrochemical industry customers. pros and cons The company's customer wins this year suggest more revenue expansion to come. In fact, forecasts fiscal 2026 sales to reach between $447.5 million and $484.5 million, another solid year of growth over fiscal 2025's $389.1 million. Despite rising sales, business isn't profitable. It ended fiscal 2025 with an operating loss of $324.4 million, deepening from a $318.3 million loss in the prior year. Costs increased from adding employees to support its business growth. On top of that, a health issue struck CEO Tom Siebel this year, and the company is now searching for a successor. This is unfortunate news, and it contributed to the decline in share price. The stock price drop is understandable, since a leadership change risks disrupting the company's future success. However, is striving to cut costs and strengthen its finances. Management expects to be free-cash-flow (FCF) positive by next year. It ended fiscal 2025 with negative FCF of $44.4 million, which is an improvement over the previous year's $90.4 million in negative FCF. Its balance sheet shows is well capitalized with total assets of $1 billion, $742.7 million of which represent cash, cash equivalents, and short-term investments. Total liabilities were $187.6 million. Deciding whether to buy stock Although isn't profitable, its strategy to prioritize business expansion over immediate profit follows a typical approach adopted by many companies in the technology sector. As long as year-over-year revenue growth remains strong and it continues to improve its financials, such as reaching positive FCF, operating loss isn't a major concern. The impending departure of its CEO is regrettable, but Siebel intends to continue shepherding the company as executive chairman. This positions for a smooth leadership transition. With plenty of positives in its favor, does this mean now is the time to buy shares? To answer that, here's a look at its stock's price-to-sales (P/S) ratio with a comparison to Microsoft's, given Microsoft sells offerings, and is a prominent AI business in its own right. Data by YCharts. The chart reveals valuation has significantly improved, as evidenced by the substantial drop in its P/S multiple from its late 2024 peak. This multiple is now considerably lower than Microsoft's, further highlighting attractive valuation. This, combined with growing sales, a robust balance sheet, and strengthening free cash flow, makes stock a compelling investment opportunity. Should you invest $1,000 in right now? Before you buy stock in consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* Now, it's worth noting Stock Advisor's total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. *Stock Advisor returns as of July 29, 2025
Globe and Mail
40 minutes ago
- Globe and Mail
Is QuantumScape a Buy After Battery Breakthroughs?
Key Points QuantumScape has figured out how to make electric vehicle batteries better than the current state of the art. It's still not actually manufacturing these batteries at scale, and it's not clear when it might begin doing so. This stock's inability to hold on to its recent gains is a red flag, but the retracement seems exaggerated. 10 stocks we like better than QuantumScape › The past few weeks have been wild ones for QuantumScape (NYSE: QS) shareholders. After it drifted to a multi-year low in April, something suddenly lit a fire under this electric vehicle (EV) technology stock in late June. Shares were up by more than 200% less than a month later. That something was a breakthrough in how the company manufactures its high-performance EV battery packs. A key step in the process can now be completed about 25 times faster than before, offering the market some assurance that this pre-commercialization outfit will have the production capacity it needs when it needs it. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Nearly half of that gain has unsurprisingly been unwound in the meantime. Investors jumped in response to the news, but eventually remembered that there's more this start-up needs to accomplish before mass commercialization. On the other hand, this pullback could also prove to be a fantastic second chance to dive in at a decent price. What's QuantumScape? First things first. What the heck is QuantumScape? This company makes lithium-based batteries like the ones the majority of modern electric vehicles require. QuantumScape's batteries are better than the standard lithium-ion battery you'll find powering most EVs these days. Not only are its solid-state lithium battery packs capable of storing more energy, they don't require the usual anode, tackling two of the EV battery business' lingering challenges. This simpler design not only translates into lower manufacturing costs, but also lower overall materials costs on a per-watt basis. The only problem? QuantumScape's batteries aren't actually being manufactured at commercial scale yet. It's not entirely clear how much it will cost or how difficult it will be to do so, either. The only powerpacks it's made so far are prototypes provided to carmakers that want to tinker with the technology in their own electric vehicles. Still, the science is quite promising. The solid-state batteries the company has made provide on the order of 15% to 40% more driving range than comparable conventional lithium-ion batteries do. Perhaps more importantly, they're far more durable. QuantumScape's own testing indicates that its powerpacks are capable of holding 95% of their original charge capacity, even after 1,000 recharges. That's about 300,000 miles worth of driving, alleviating one of would-be EV owners' top cost concerns -- the eventual replacement of their electric vehicle's battery at a price tag of anywhere between $10,000 and $20,000. A big leap forward Given all this, the company's story is compelling. The question is: How close is QuantumScape to actually manufacturing an affordable and functional solid-state EV battery at scale? Well, it's at least one step closer to this endzone than it was a little over a month ago. In late June, QuantumScape announced it had successfully integrated its advanced "Cobra" separator process into the production of its baseline lithium cells. That means the ceramic-based separator between its batteries' solid cathodes and the company's anode alternative can now be layered into place about 25 times faster than the company's previous fabrication process. That's the whole reason for July's brilliant burst of bullishness. Welcome to the world of story stocks. Still, it's easy to see why the market suddenly became so excited. This is no small matter. This ceramic material negates the need for a porous polymer separator between the liquid electrolyte and lithium metal material found inside most common lithium-based batteries. Not only is the solid nature of QuantumScape's battery materials more efficient at transferring a charge from one side of the battery to another, there's little loss of this efficiency over time, compared to a fluid material. Liquid electrolytes are also potentially just more dangerous than their solid-state counterparts, since they're more likely to be ignited and burn out of control than solid-state batteries. More to the point for investors, being one (admittedly big) step closer to being able produce its batteries at scale is a big win for QuantumScape, and its shareholders. Even if the bulls did end up getting ahead of themselves and have since cooled their jets, that's what catapulted the stock higher in July, reminding investors that story stocks like this one can be quite unpredictable. Don't waste the in-the-meantime The overarching question remains: Is QuantumScape stock a buy following its battery breakthrough? One of the key details glossed over by the noise of the recent run-up is that this $5 billion company is still bleeding money. It spent over $500 million last year, mostly on research and development, topping 2024's and 2023's outlays. And there's not a stitch of revenue yet. That's not an unusual situation for a start-up that's still refining what could be a game-changing technology; you have to spend money to make money. But it's a concern when there's less than $1 billion worth of cash and liquid assets on the balance sheet. Fund-raising could be in the cards. There's also no assurance that paying customers will actually step up once at-scale production becomes possible. The company's said both should materialize sometime in 2026, but such timelines are difficult to predict when a technological solution is as new as this one is. Either way, meaningful revenue wouldn't likely start to flow until 2027 or even 2028, with profits unlikely for at least a while after that. Nevertheless, Volkswagen -- the world's second-biggest automaker, and one of its biggest EV manufacturers -- has remained interested and financially supportive for years now when it didn't have to do so. It's QuantumScape's single biggest shareholder, in fact. Given how close QuantumScape is to the finish line now, it would be surprising if Volkswagen didn't see the development of these superior EV batteries all the way through. The only catch is that the massive automaker probably doesn't care at this point if QuantumScape ever actually turns a profit. It just wants the advanced lithium batteries. That's not the case for individual QS shareholders. Bottom line? Buy it if you're inclined to take a big risk with a potentially big reward. Just be prepared for plenty of volatility, and the possibility of significant losses. Even for most risk-tolerant investors, the odds of any meaningful long-term upside aren't quite high enough here to justify the amount of risk you'd actually be taking on. Sure, that could change in the future. Just don't miss out on other opportunities in the meantime while you're waiting to see if this story stock that raises more questions than it answers actually pans out. Don't sweat not getting in on the proverbial ground floor, either. If QuantumScape's tech is going to pay off, that will become clear enough once real revenue starts to flow. Should you invest $1,000 in QuantumScape right now? Before you buy stock in QuantumScape, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and QuantumScape wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* Now, it's worth noting Stock Advisor's total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025
Globe and Mail
an hour ago
- Globe and Mail
American Vanguard (AVD) Q2 Loss Down 93%
Key Points GAAP EPS of $(0.03) for Q2 2025 beat expectations, narrowing GAAP losses from $(0.42) in Q2 2024. Revenue (GAAP) reached $129.3 million, exceeding consensus estimates and increasing 1% year-over-year. These 10 stocks could mint the next wave of millionaires › American Vanguard (NYSE:AVD), a specialty and agricultural chemicals producer with a growing global footprint, released its earnings for the second quarter of fiscal 2025 on August 1, 2025. The company reported a GAAP earnings per share (EPS) loss of $(0.03), which surpassed analyst GAAP estimates of $(0.11). Revenue (GAAP) came in at $129.3 million, topping GAAP forecasts of $125.0 million and slightly up from $128.2 million in GAAP net sales in Q2 2024. Key achievements for the quarter included strong gains in adjusted EBITDA, an expansion in gross profit margins to 31% from 29% in Q2 2024, and continued reductions in operating expenses and debt. The results marked an early turnaround from the prior year's losses, as American Vanguard reported GAAP EPS of $(0.03) compared to $(0.42) in Q2 2024, though Continued net losses (GAAP) and restrained top-line growth in the first half of 2025 highlight that challenges remain. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS (GAAP) ($0.03) ($0.11) ($0.42) N/A Revenue (GAAP) $129.3 million $125.0 million $128.2 million 1% Adjusted EBITDA $11.0 million $6.2 million 77% Gross Profit Margin 31% 29% 2 pp Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. Company Overview and Focus American Vanguard is a North America–based manufacturer specializing in crop protection chemicals, including insecticides, herbicides, and soil fumigants for agriculture and turf. Its product portfolio also extends to environmental products and biological solutions, serving customers in the United States and over 40 international markets. In recent years, the company's strategy has centered on innovation—especially 'green' chemistry, regulatory compliance, and expanding its global presence. American Vanguard's performance relies on its ability to develop new formulations, execute cost discipline, comply with evolving regulations, and differentiate its offerings in niche markets. Quarterly Performance: Recovery in Progress Financial results for the period showed tangible progress in operational improvement. GAAP EPS came in well ahead of estimates, narrowing the quarterly net loss (GAAP) to $0.85 million from $11.7 million in the prior-year quarter. While overall sales (GAAP) grew 1%, this reversed the declines of earlier quarters and indicated an easing of the customer destocking cycle. Segment results showed U.S. crop sales rose 1% to $52.7 million (GAAP). Management noted, 'Customer destocking is beginning to subside. Against this backdrop, we were able to increase revenue by approximately 1% year-over-year (GAAP).' The top-line result masked a much stronger recovery in profitability. Adjusted EBITDA, a measure of core operating performance that excludes unusual items, climbed to $11.0 million from $6.2 million year-over-year. The gross profit margin—calculated as gross profit divided by revenue—jumped two percentage points year-over-year to 31% (GAAP). The improvement in gross profit margin came despite flat sales and reflected both lower cost of goods sold and improvements in manufacturing and procurement processes (GAAP). Gross profit itself rose 7% year-over-year on a GAAP basis, assisted by a 2% reduction in cost of sales year-over-year. Cost discipline underpinned these gains. Selling, general, and administrative (SG&A) expense (GAAP) dropped to $28.8 million from $31.1 million. Research, product development, and regulatory costs were also sharply lower at $5.8 million, reflecting reduced spending on transformation initiatives. One-time transformation charges, tied to restructuring efforts, fell to $1.6 million from $7.3 million year-over-year. As a result, operating income improved from a loss of $9.2 million in Q2 2024 to a gain of $4.4 million. Balance sheet trends showed continued focus on liquidity and working capital management. Inventory at the end of Q2 2025 was $191 million, representing a $53 million reduction from a year earlier. Debt outstanding also fell $22 million compared to last year to $189 million at quarter-end. The company highlighted its ongoing plan to use free cash flow primarily to reduce debt going forward. Within its product portfolio, metam sodium (a soil fumigant) and Thimet (a soil insecticide for peanuts and corn) were called out as bright spots. Prior headwinds such as the withdrawal of Dacthal (previously used in certain crops), weaker demand in the agave market in Mexico, and drought in Australia weighed on international results, but did not deepen in the period. There was no material commentary on new product launches for the quarter, though management emphasized an ongoing shift toward differentiated and sustainable solutions. No significant regulatory or compliance events were noted, though costs in this area remain a structural consideration. Cash used in operations for the six months ended June 30, 2025 stood at $39.8 million, an improvement from $49.4 million in the same period of 2024. The company did not announce any dividend changes for the quarter and did not specify a current payout. AVD does not currently pay a dividend. Guidance and Looking Ahead American Vanguard's management reaffirmed its full-year guidance, despite earlier reductions to estimates in the first quarter. For FY2025, the company expects revenue of $535–$545 million (GAAP), and adjusted EBITDA guidance of $40–$44 million for the full year 2025 (non-GAAP). This outlook reflects ongoing caution about the pace of agricultural recovery and the persistence of competitive market dynamics. Leadership continues to focus on cost control, inventory reduction, and margin improvement. Management stated, 'the agriculture economy appears to be in the early stages of a recovery.' Investors will want to monitor revenue trajectory, progress on restoring sustained profitability, and execution on debt reduction in the coming quarters. No new quantitative guidance was issued for dividends or other near-term capital allocation initiatives. Persistent net losses and modest top-line growth remain areas for close scrutiny as the turnaround progresses. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,036%* — a market-crushing outperformance compared to 181% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of July 29, 2025
