Trump Media just made a $6.4 billion bet that's shaking up Wall Street

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U.S. President Donald Trump speaks during a rally, in Henderson, Nevada, U.S. October 31, 2024. REUTERS/Mike Blake TPX IMAGES OF THE DAY

President Donald Trump used to be highly critical of cryptocurrencies. During a 2021 interview with Fox Business, Trump said of Bitcoin, "seems like a scam." Bitcoin, Trump argued, "was based on thin air."

In a July 11, 2019 post on X.com, then Twitter, Trump wrote, "We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar!"

But these days, Trump and his publicly traded company Trump Media & Technology Group are aggressive promoters of cryptocurrencies.

In an article published by Nasdaq.com on September 6, reporter Dominic Basulto describes the impact that Trump's involvement with cryptocurrencies is having on Wall Street.

"When the Trump Administration came into office in January," Basulto explains, "the widely held expectation was that it would help to pave the way for rapid growth within the crypto sector, primarily by reducing the regulatory hurdles that have plagued crypto for years. But nobody could have imagined that companies run or controlled by the Trump family would soon be taking positions in specific cryptocurrencies, or helping to promote the interests of certain cryptocurrency companies."

Basulto continues, "Strangely enough, that's what appears to be happening. It started with the launch of the Official Trump meme coin in January, and has gained momentum since then. Companies owned or controlled by the Trump family have launched new cryptos, invested in cryptocurrencies such as Bitcoin, and helped to promote the interests of crypto companies viewed as being friendly to the Trump Administration."

According to Basulto, Trump Media & Technology Group appears to be "transforming into a crypto company."

"The latest unexpected move by Trump Media & Technology Group is to create and fund a new publicly traded company called Trump Media Group CRO Strategy, which will trade under the ticker symbol MCGA," Basulto observes. "Instead of becoming a Bitcoin treasury company like Trump Media & Technology Group, the new company will be a CRO treasury company. Simply put, its primary purpose will be to accumulate as much Cronos as possible, as quickly as possible, using money from outside investors. According to early estimates, as much as $6.4 billion might be used to purchase CRO tokens."

Read Dominic Basulto's full article on Nasdaq.com at this link.

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