Publicly traded media outlet Newsmax has announced plans to establish a digital asset treasury anchored in Bitcoin (BTC) and President Donald Trump’s meme coin (TRUMP).
The company’s board of directors approved the initiative this week, marking a strategic entry into the cryptocurrency sector.
According to the official announcement, Newsmax is set to invest as much as $5 million in Bitcoin and Trump Coin over the course of the next year. The company anticipates completing its first crypto acquisition in the near future. However, details on how it will fund the plan have not been disclosed.
CEO: Bitcoin Becoming the “Gold Standard” of Crypto
In a statement, Newsmax CEO Christopher Ruddy described Bitcoin as “fast becoming the gold standard of cryptocurrency”. He stated that adding it to the firm’s reserves would serve as an important marker of corporate growth and innovation.
Ruddy also expressed optimism about the inclusion of the Trump Coin. He suggested that its market performance might serve as a reflection of Donald Trump’s presidency, which he described as “impressive.”
Market Reaction and Share Performance
Following the announcement, Newsmax shares (NYSE: NMAX) fell about 4% on Thursday to $10.83, amid a broader market decline. However, after-hours trading saw the stock recover by 3.9%, according to Yahoo Finance.
Meanwhile, Bitcoin and TRUMP both saw declines in Friday trading. Bitcoin slipped 3.6% to $107,199, while the Trump-themed token fell 4.6% to $5.82. Notably, the meme coin is now down roughly 92% from its all-time high of $73.43, reached in January.
Comparison with Trump Media’s Crypto Strategy
Newsmax’s move follows a similar strategy by Trump Media & Technology Group, which earlier this year invested $2 billion in Bitcoin and related securities. That purchase made Trump Media one of the top ten publicly listed companies holding Bitcoin reserves.
If Newsmax commits the full $5 million toward Bitcoin, it would acquire around 46 BTC, placing it outside the top 100 corporate Bitcoin holders, based on data from BitcoinTreasuries.net.