DJT Stock Skyrockets: 5 Must-Know Facts Behind Trump Media’s Sudden Surge

Trump Media & Technology Group Corp. (NASDAQ: DJT) shares spiked more than 9 % in pre-market trading on Tuesday, touching $28.10 after closing at $25.72 on Monday, as investors digested fresh reports that the company plans a multi-billion-dollar foray into cryptocurrency. Capital-raise plan According to the Financial Times, DJT is preparing a two-step capital raise totalling roughly $3 billion—$2 billion in new equity and another $1 billion via a convertible bond—to fund purchases of Bitcoin and other digital assets. Reuters later confirmed the story, citing people familiar with the discussions. Why dilution didn’t deter buying Ordinarily, news of share issuance sparks selling pressure because it dilutes existing holders, yet DJT rallied. MarketWatch notes that the meme-stock style following behind Donald Trump–linked tickers often prioritises headline buzz over traditional valuation metrics. The crypto angle appears to have overshadowed dilution fears, fuelling speculative demand from retail traders active on Truth Social and X. Volatility is nothing new • DJT went public in late March after merging with Digital World Acquisition Corp. • The stock peaked at $79.38 in its first week, then slid below $24 before the current bounce—a swing of more than 200 % in two months. • Average daily volume still tops 4 million shares, underscoring its meme-stock status. Crypto catalyst Bitcoin is up about 55 % year-to-date, and Trump has recently embraced digital assets on the campaign trail, even accepting crypto donations. A direct Bitcoin purchase by his namesake media company would cement the political brand’s link to the asset class and could attract crypto-native investors looking for U.S. equity exposure to digital-asset upside. Fundamentals at a glance • Shares outstanding: 220.6 million • Free float: 96 million • Latest reported cash: $196 million (Q1 filing) • Q1 revenue: $770,000, fueled primarily by Truth Social advertising What analysts say No major Wall Street firm currently covers DJT, but independent research firm Kerrisdale Capital calls the stock “wildly overvalued relative to fundamentals,” warning that “crypto speculation doesn’t fix a cash-burning social-media platform.” Key risks 1. Shareholder dilution from the proposed equity and convertible issuance 2. Regulatory scrutiny if the company holds large crypto positions on its balance sheet 3. Ongoing volatility tied to the 2024 presidential race and former President Trump’s legal proceedings Bottom line DJT stock continues to trade more on narrative than numbers. The prospective $3 billion crypto war-chest is the latest storyline galvanising traders, but long-term investors should weigh dilution, execution risk and extreme price swings before chasing the rally.