Newsmax Plans $5M Investment in BTC and TRUMP Reserve

Newsmax, a US-listed media company, plans to invest up to $5 million to create a digital asset reserve consisting of Bitcoin and the Trump meme token (TRUMP). The company's board of directors has approved the plan, which aims to allocate funds within the next year to these two asset classes.

Newsmax, a publicly traded media company, has announced plans to invest up to $5 million in creating a digital asset reserve, according to a Yahoo Finance report. The company's board of directors approved the plan, which will see Newsmax allocate funds over the next year to Bitcoin and the Trump meme token (TRUMP).

The initiative, led by Newsmax CEO Christopher Ruddy, aims to add these cryptocurrencies to the company's reserves. Ruddy stated that Bitcoin is becoming the "gold standard of cryptocurrency" and that the Trump meme coin, which trades as TRUMP on Solana, has the potential to track the success of the Trump presidency. The company expects to make the first strategic purchase "in the near future," though details on funding the initiative were not disclosed.

The decision comes amidst broader market volatility, with shares of Newsmax dropping around 4% today to $10.83. However, after-hours trading saw shares rise more than 4%, according to data from Yahoo Finance. Both Bitcoin and TRUMP dipped further on Thursday, with BTC falling 3% to $107,709 and TRUMP dropping 2.1% to $5.90.

Newsmax joins other media companies with digital asset reserves plans, including Trump Media, which has invested $2 billion in Bitcoin. If Newsmax uses all $5 million of its approved funds to purchase BTC, it would be able to obtain around 46 BTC, placing it outside the top 100 holders.

Separately, M2 Capital, a UAE-based investment arm, has announced a $21 million investment in the AVAX-focused digital asset treasury, AVAX One, according to an Investing.com report. The investment aims to increase access to AVAX across the MENA region and aligns with M2 Capital's strategic focus on compliant digital assets.