Trump Media Stock Slides Another Day As Bitcoin Pivot Sparks Dilution Concerns, Retail Sentiment Wavers

The planned issuance of new shares to raise the money would reportedly dilute existing ownership, including Trump family holdings, reducing their voting control to below 50% for the first time.

Shares of Trump Media & Technology Group (DJT), the media firm tied to President Donald Trump, extended losses for a second straight session on Wednesday. 

The selloff was triggered after the company announced it would raise $2.5 billion to fund a Bitcoin treasury, which raised red flags among retail traders and institutional investors.

Shares fell nearly 7% on Wednesday, while the retail sentiment among Stocktwits users dropped.

The planned issuance of new shares to raise the money would dilute existing ownership, including Trump family holdings, reducing their voting control to below 50% for the first time, according to Barron’s.

CEO Devin Nunes framed the strategy as a defense against what the company called “harassment and discrimination by financial institutions, which plague many Americans and U.S. firms.”

The approach mirrors that of MicroStrategy (MSTR) and its CEO, Michael Saylor, who popularized holding Bitcoin as a corporate treasury reserve. 

Many small-cap and mid-cap firms have recently adopted similar crypto plays to energize their stock prices.

Meanwhile, the U.S. president’s son, Eric Trump, echoed Nunes’ rhetoric at a cryptocurrency conference on Wednesday, saying certain major banks should “go extinct.” He and his brother, Donald Trump Jr., appeared alongside partners from their new crypto-mining venture, American Bitcoin, and encouraged attendees to accumulate BTC.

President Trump himself has advocated for more crypto-friendly policies during his second term.

On Stocktwits, sentiment for DJT shifted to ‘neutral’ from ‘bullish’ a day ago, reflecting some retail unease with the company’s crypto gamble.

Conversations also turned toward the latest blow for Trump from a U.S. trade court ruling his global reciprocal tariff blitz unlawful.

Critics on the platform also mocked the president with a new sledge: “TACO,” which is reportedly Wall Street’s new shorthand for “Trump Always Chickens Out” — referring to his backing off from trade war threats.

DJT shares are down more than 37% year-to-date. According to Koyfin, short interest in the stock has risen from 4.3% at the start of 2025 to 4.7% as of last week.

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