Trump Media & Technology Group (TMTG) announced plans on Wednesday to distribute a new digital token to shareholders, a strategic pivot that comes just 24 hours after its equity ETF launch was met with a sell-off.
In a press release dated 31 Dec, the company confirmed it would partner with Crypto.com to issue one digital token for every share of DJT stock held. The tokens will be minted on the Cronos blockchain.
To avoid immediate conflict with securities regulators, TMTG stated the tokens will be "non-transferable" and cannot be exchanged for cash. Instead, they will function as a rewards mechanism, offering holders "benefits or discounts" on Truth Social and the company’s streaming platform, Truth+.
However, the structure forces a massive integration between TMTG's retail shareholder base and the crypto ecosystem. To receive the token, investors will likely need to engage with Crypto.com’s infrastructure, driving user acquisition for the Singaporean exchange.
The announcement appears timed to counter negative sentiment following TMTG’s "Truth.Fi" ETF rollout. Shares fell approximately 4.5% on Tuesday, closing near $12.57, as investors reacted coolly to funds that track standard themes like "energy independence" rather than holding Bitcoin directly.
By pivoting to a "digital token dividend", a strategy made famous by Overstock.com in previous cycles, TMTG is attempting to leverage its retail base's enthusiasm for crypto to support the stock price, even as the tokens themselves ostensibly hold no monetary value.
