1. Background Introduction

On June 6, 2025, shares of Trump Media and Technology (stock code DJT), the social media company of former US President Trump, slumped as the Musk-Trump feud intensified over tax reform and spending plans, with the stock price falling 4.2% in a single day to close at $20.97. This decline continued to pressure the company after it previously announced a $2.5 billion fundraising to invest in Bitcoin.

2. The Cause of the Musk-Trump Discrepancy

Recently, Trump introduced a large-scale tax reduction and fiscal spending bill aimed at stimulating economic growth and social welfare. However, Elon Musk publicly opposed the proposal, calling it “too much of a financial burden.” As an ally who invested nearly $300 million to support the Republican Party in the 2024 election, Musk’s reversal of stance disappointed Trump greatly, leading to a back-and-forth on social media that directly shook investors’ confidence in Trump Media.

3. Latest Stock Price Performance and Data Analysis

Latest price: $19.93 (June 13, 2025). Since the beginning of the year, DJT’s stock price has fallen from about $34.39, reflecting the market’s sensitivity to its single advertising revenue model and support for Musk. The large Bitcoin investment plan has failed to boost the stock price in the short term, instead increasing operational uncertainty.

4. Progress of Bitcoin ETF Registration

According to the company’s announcement, Trump Media has submitted a preliminary registration statement for a Bitcoin ETF to the U.S. Securities and Exchange Commission (SEC), aiming to diversify its revenue sources through financial derivatives. However, the SEC is currently tightening its approval process for cryptocurrency asset products, and the approval timeline for the ETF remains uncertain. Investors need to pay attention to:

1. SEC Approval Progress
2. Future use of raised funds
3. Bitcoin market volatility risk

5. Market Impact and Investment Recommendations

Impact Analysis

• Short-term risk:The Musk-Trump feud may continue to escalate, undermining the confidence of social media users and advertisers.
• Long-term potential:If the Bitcoin ETF is approved, it could bring new sources of revenue growth.

Beginner Investment Tips

1. Diversified Allocation:It is not advisable to place all funds on DJT; it is recommended to pair it with mature blue-chip stocks or index funds.
2. Follow the approval dynamics:Track the SEC’s decision on Bitcoin ETFs and adjust positions in a timely manner.
3. Control position:Set stop-loss points for highly volatile assets to avoid emotional trading.