After Nearly $200 Million in Crypto Losses, Trump Media Will Pivot Away From Bitcoin. Here's What Crypto Investors Need to Know.
As Bitcoin treasury companies are finding out, trying to time the crypto market is a recipe for disaster.
Overview
Last summer, Trump Media & Technology Group (NASDAQ: DJT) -- the social media company majority-owned by President Donald Trump -- made headlines when it announced plans to transform itself into a Bitcoin (CRYPTO: BTC) treasury company. Trump Media now holds 12,062 Bitcoins, worth nearly $755 million at today's prices, so it followed through on its promise.
However, that Bitcoin position is currently deep under water. Trump Media recently reported a $190 million paper loss on its crypto holdings, due largely to the fact that the price of Bitcoin has been in decline for more than 10 months now. As a result, Trump Media will pivot away from Bitcoin and back into its core business of media and advertising.
Details
Trump Media is hardly the only Bitcoin treasury company that's in trouble. This year has seen a shakeout of the top digital asset treasury companies. The one that is on everyone's radar, of course, is Strategy (NASDAQ: MSTR). The company that famously told investors, "Never sell your Bitcoin," is doing just that, and that has the crypto market spooked.
Source
Originally published at www.fool.com.