Newsmax, a prominent U.S. conservative media company, announced plans to invest up to $5 million in Bitcoin and the politically associated Trump token, intertwining its corporate treasury with digital assets in a move that blends finance with ideological alignment.
The media firm, which owns the Newsmax television channel, intends to make these cryptocurrency purchases over the next 12 months, contingent on market developments. This investment marks Newsmax as potentially the first NYSE-listed company to acquire the controversial TRUMP token through regulated channels.
Christopher Ruddy, Newsmax CEO, justified the decision by highlighting Bitcoin’s growing importance as a digital reserve asset. He stated Bitcoin is “rapidly becoming the gold standard of cryptocurrencies.”
Ruddy also emphasized the symbolic aspect of including the Trump token in the company’s digital treasury plan. He added, “We believe its value should reflect the success of the Trump presidency, which so far has been impressive.”
The TRUMP token, which is associated with former President Donald Trump, has experienced a consistent downward trend since its debut. It currently trades around $5.73, with a market capitalization of $1.1 billion.
The announcement comes amidst high volatility across the broader cryptocurrency market. Bitcoin recently experienced significant price declines, reaching multi-month lows, contributing to what analysts describe as “extreme fear” among investors.
Newsmax plans its first cryptocurrency purchase in the short term, with future acquisitions dependent on market conditions and strategic goals. This move aligns with a growing trend of publicly traded companies holding Bitcoin in their reserves, a collective value that recently peaked at $125 billion.
The company’s decision could inspire other ideologically aligned media firms to diversify their assets with digital currencies. Such a strategy, however, carries significant exposure to market volatility and regulatory risks.
Newsmax itself, known for its conservative editorial stance, listed on the New York Stock Exchange in March after raising $300 million through a combination of private preferred share sales and a public offering. Despite its stock rising 2.5% on Friday, valuing the company at approximately $1.4 billion, shares have declined more than 80% since their public debut earlier this year.
This investment introduces an unprecedented financial and political dimension to the U.S. stock market. It can be viewed as both a marketing strategy and a statement of ideological positioning.