DJT shares rose about 3% in premarket trading after a digital asset update from Trump Media & Technology Group Corp. The company outlined plans to distribute digital tokens to shareholders. The disclosure placed blockchain activity at the center of its latest corporate move.
Trump Media Details Token Partnership, Allocation, and Limits
According to a recent press release, the token program will be conducted in conjunction with Crypto.com. Distribution of the coin will take place on Cronos blockchain technology. The company said the choice was made due to speed and interoperability.
Each ultimate beneficial owner holding whole shares of DJT stock is expected to receive one digital token per share. Record dates will be used to determine eligibility. Those dates have not been announced yet.
The company said token holders could receive occasional rewards. Those may include rewards or discounts associated with Trump Media’s platforms. The products mentioned are Truth Social, Truth+ and Truth Predict.
Bitcoin treasury firm Trump Media emphasized the tokens will not function as securities. It is not to be understood as ownership, profit sharing, or other value related to managerial efforts. The company also said that the tokens may not be transferable and would be non-redeemable for cash.
Company Retains Full Discretion Over Token Plan
Trump Media will also have full control of the initiative. The company added that it may amend, suspend or terminate the distribution at any time.
More details are due in the new year. That includes record dates and technical details about the rollout. The company stated distribution will commence in new year.
Trump Media spans the social media, streaming and financial technology sectors. The token project integrates a cryptocurrency to its network as well. Now investors are waiting for more detail around execution and timing.
Breaking: Bitcoin Treasury Firm Trump Media to Distribute Digital Tokens to Shareholders; DJT Stock Rises
