Newsmax Reveals Bitcoin, Trump Meme Coin Treasury

Core Viewpoint - Newsmax is establishing a digital assets treasury focused on Bitcoin and the TRUMP meme coin, with plans to invest up to $5 million over the next year [1][2]. Group 1: Company Strategy - The board of directors of Newsmax has approved the acquisition of Bitcoin and TRUMP coin as part of its digital asset strategy [1]. - CEO Christopher Ruddy emphasized the importance of Bitcoin as a reserve asset and expressed optimism about the potential value of Trump Coin, linking it to the success of the Trump presidency [2]. - The company plans to make its first strategic purchase soon, although specific funding details were not disclosed [2]. Group 2: Market Performance - Newsmax shares experienced a decline of approximately 4% to $10.83 amid broader market volatility, but saw a recovery of over 4% in after-hours trading [2]. - Both Bitcoin and TRUMP coin saw price declines, with Bitcoin dropping 3% to $107,709 and TRUMP coin falling 2.1% to $5.90, which is nearly 92% off its all-time high [3]. Group 3: Industry Context - Newsmax joins other media companies, such as Trump Media, in exploring digital asset reserves, with Trump Media having previously acquired $2 billion in Bitcoin and related securities [4]. - If Newsmax were to invest the full $5 million in Bitcoin, it would only acquire about 46 BTC, which would not place it among the top 100 Bitcoin holders [4]. Group 4: Company Insights - A spokesperson for Newsmax indicated that the decision to invest in cryptocurrencies was influenced by the success of other companies in the space, and the approach will be conservative to test the waters [5]. - The spokesperson highlighted Bitcoin's status as the "gold standard" of cryptocurrency and expressed belief that Trump Coin is undervalued due to its association with a globally recognized figure [5].