Trump Media & Technology Group (TMTG), trading as DJT, is in advanced discussions to spin off its Truth Social platform and related businesses into a separate publicly traded entity called SpinCo. The company announced on Friday that it is in ongoing talks with TAE Technologies, Inc. and Texas Ventures Acquisition III Corp. (TVA) regarding the transaction.
The proposed structure would see the spin-off occur after TMTG's pending merger with TAE Technologies, a power fusion firm. Shares of the new SpinCo entity would be distributed to TMTG shareholders of record prior to the merger closing. Following this distribution, SpinCo would then merge with Texas Ventures III. TMTG stated the TAE businesses would remain within the public company post-spin-off, alongside certain of TMTG's existing assets.
The companies emphasized that "no definitive agreement has been reached" and discussions are ongoing, with no assurance a deal will be finalized. Any agreement would require board, regulatory, and shareholder approvals.
While the announcement did not provide specific details on the fate of TMTG's cryptocurrency initiatives, the firm has been actively expanding its crypto footprint. Last year, TMTG added $2 billion in Bitcoin and Bitcoin-related securities to its balance sheet. It has also filed for several cryptocurrency ETFs, including a Bitcoin ETF in June, a "crypto blue chip" ETF including Ethereum, Solana (SOL), and XRP, and more recently, a joint Truth Social-branded Bitcoin and Ethereum ETF, as well as one centered on Crypto.com's CRO token.
Furthermore, TMTG is collaborating with Crypto.com on a digital token intended to be airdropped to Trump Media shareholders. The deadline for broker participants to provide shareholder information passed earlier this month, though the token has not yet been distributed.
The news did not provide an immediate boost to DJT's stock price, which was down around 2.10% on the day of the announcement and has fallen approximately 40% over the last six months.
