NewsMax Bets $5M on Bitcoin and Trump Coin Amid 70% Slump
NewsMax (NASDAQ: NMAX) will invest up to $5 million over 12 months in Bitcoin (BTC) and Official Trump Coin (TRUMP), following board approval on Oct. 16, 2025. This makes it the first NYSE-listed firm to hold TRUMP tokens and the 100th public company to adopt Bitcoin.
The strategy balances Bitcoin’s relative stability with the high-risk, high-reward potential of Trump’s memecoin, driven by the former president’s pro-crypto influence. Immediately after the announcement, a wallet snapped up $4 million of TRUMP, but its price has plunged 70% from a $16 peak to about $1.25.
NewsMax stock rose 3% in after-hours trading, though the crypto reserves represent a tiny share of the company’s $1.4 billion valuation since its March 2025 IPO. CEO Christopher Ruddy calls Bitcoin the gold standard of cryptocurrency and expects TRUMP to track the progress of Trump’s presidency.
Traders should weigh Bitcoin’s growing institutional adoption against the significant downside risk in Trump Coin exposure. Technical indicators for TRUMP show a bearish trend with five consecutive lower lows and a break below key support.
Bearish
Trump Coin’s sharp 70% drop and bearish technical signals—five straight lower lows and a break below key support—point to continued downside risk. Despite NewsMax boosting institutional crypto adoption, the move has failed to stem selling pressure on TRUMP. In the short term, traders should brace for further losses in Trump Coin. Over the long term, its performance will hinge on Trump’s political momentum, while Bitcoin’s adoption remains on a separate, more stable trajectory.