The Trump Media Group has accumulated Bitcoins worth $2 billion in its treasury amid continued efforts to establish a strong crypto asset base. Shares of the company jumped nearly 9% in trade after the news broke on Monday morning. The DJT stock reached a high of $20.38 after closing at $18.67 on July 18. US President Donald Trump — who owns more then a 50% stake in the company — has also seen his share become worth nearly $2.3 billion.
According to reports, the cryptocurrency now makes up approximately two-thirds of the company’s $3 billion liquid assets. Trump Media has also allocated around $300 million to an options acquisition strategy for bitcoin-related securities.
New crypto laws in the making
The development came even as Trump sent shares of crypto-linked companies soaring with a new law regulating stablecoins in the US. The Republican government has pushed to legitimise digital currencies in recent months with two additional bills heading to the Senate last week after being passed by the House. Trump signed the GENIUS Act late on Friday — marking a huge win for crypto industry that has been lobbying for a regulatory framework to gain greater legitimacy. The bill was passed in the House of Representatives by a vote of 308 to 122 on Thursday, after Senate approval.
The US President has repeatedly vowed to make America the ‘cryptocurrency capital’ of the world — establishing a Strategic Bitcoin Reserve for the United States and even appointing David Sacks as his ‘AI and crypto czar’.
Crypto-linked stocks advance after stablecoin law
Shares of crypto-linked companies jumped on Monday morning as ether prices scaled their highest this year after Trump signed the GENIUS Act into law. Bitcoin and Ethereum however declined during the day amid profit-taking and increased selling activity after reaching recent all-time highs. The world’s biggest cryptocurrency reversed previous gains won after Trump signed the GENIUS Act into law late Friday — falling 1.11% to $116,822.34. Meanwhile Ethereum declined 0.19% to $3,734.50.
The newly passed bill bans yields or interest payments on regulated stablecoins. According to Deutsche Bank, this is leading to a rise in ether prices on expectations that investors are moving into the world’s second biggest cryptocurrency as an alternative for yield generation in decentralized finance.