Newsmax, the news outlet operator, has announced a plan approved by its Board of Directors to purchase up to $5 million in cryptocurrency over the next year for its strategic reserves. The initiative will focus on acquiring both Bitcoin ($BTC) and the official Trump Coin ($TRUMP).
Strategic Crypto Acquisition Details
- Asset Allocation: The reserve will include Bitcoin, which CEO Christopher Ruddy referred to as the “gold standard” of crypto, and Trump Coin, citing its “impressive” success and $1.2 billion circulating value.
- Market First: If the Trump Coin acquisition is completed, Newsmax would become the first NYSE-listed company to purchase the token.
- Rationale: Ruddy stated that adding Bitcoin is an “important company marker,” aligning with their belief in the asset. The plan follows a broader movement, coming six months after President Trump unveiled his own plan for a “national strategic Bitcoin reserve.”
- Next Steps: Newsmax plans to make its first crypto purchase soon, though it did not disclose the funding source for the initiative. Future acquisitions will be based on market conditions and strategic goals.
Market Reaction and Volatility
Following the announcement, Newsmax’s shares and the targeted cryptocurrencies experienced volatility:
- Newsmax Shares ($NMAX): The company’s stock dropped nearly 4% on the NYSE, trading at $10.83. Newsmax went public in March 2025 with a $300 million IPO.
- Bitcoin ($BTC): Bitcoin was down 5.31%, trading at $105,227, amid a broader market selloff that saw liquidations exceeding $19 billion after the asset hit a record high of $126,000 on October 6th.
- Trump Coin ($TRUMP): The token also saw a steep plunge of 6.6%, trading at $5.64.
In summary, Newsmax is moving to embrace digital assets by becoming a pioneering public company to add a politically-linked coin, Trump Coin, alongside a major crypto like Bitcoin, to its corporate treasury, despite an immediate negative reaction in its stock price and prevailing crypto market volatility.
October 2025, Cryptoniteuae
📧 The Gulf reads Cryptonite first
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