Trump Media stock crashes to all-time lows, wiping out $5B in First Family wealth during crypto slide

Core Insights - Trump Media & Technology Group has experienced a significant decline in stock price, losing over $5 billion in value as cryptocurrencies continue to fall [1][3][10] - The company's shares, trading under the ticker DJT, have dropped nearly 70% this year, with a 34.6% decrease occurring in the past month [1][11] - The decline in stock value is linked to a broader downturn in the cryptocurrency market, particularly following the company's announcement of a $2 billion Bitcoin purchase [4][10] Company Performance - The stock price was down approximately 1% at $10.76 in early morning trading, having reached an intraday low of $10.32, the lowest since fall 2021 [2][9] - President Trump indirectly owns around 115 million shares, held in a trust controlled by his son, Don Jr., who is on the board [3] - The family's holdings peaked at nearly $6.5 billion in mid-May 2024 but have since lost more than $5.3 billion in value [3] Market Context - The cryptocurrency market has faced significant challenges, with Bitcoin prices dipping below $90,000, erasing its gains for the year [4] - Traders are becoming more cautious with risky assets due to reduced expectations for an interest-rate cut in the near future [5] Business Developments - Trump Media created Truth Social after President Trump was banned from major social media platforms following the January 6, 2021, Capitol riot [9] - The stock traded as high as $100 in 2022 after the merger announcement with Digital World Acquisition Corp. [9] - Despite the stock decline, the Trump family's personal crypto ventures have reportedly generated hundreds of millions of dollars, with the Trump Organization earning over $800 million from digital asset sales in the first half of the year [10] Regulatory Environment - President Trump has aimed to position the US as the "crypto capital of the world," signing the "GENIUS Act" to enhance consumer protections in digital currencies [12] - The White House has denied any conflict of interest regarding the Trump family's involvement in cryptocurrency investments [13]