1. What is Trump Media?

Trump Media and Technology is a social media company founded by former U.S. President Donald Trump, with its main product being the “Truth Social” platform. Since going public, the company has consistently carried a strong political tone, attracting a segment of conservative users and investors.

However, the company’s revenue structure is relatively simple, mainly relying on advertising income, and its profit model has not yet formed a strong moat. Therefore, once political risks or PR crises arise, it can easily trigger a violent market reaction.

2. The “Friendship Breakdown” between Trump and Musk

In 2024, Musk was a key supporter of Trump, investing heavily to promote the Republican victory and even serving as the head of the efficiency reform department in the government. However, in 2025, Musk suddenly turned against Trump’s proposed tax reform, claiming that “government spending is out of control.”

This position quickly infuriated Trump, who publicly “named and criticized” Musk, turning the two from allies into rivals, which became the direct trigger for the slump in Trump Media shares as the Musk-Trump feud unfolded.

3. Analysis of Latest Price Performance and Reasons for Decline

After the aforementioned contradictions were made public, Trump Media’s stock price fell by 4.2% on June 6, closing at $20.97. The previous week, the company faced market sell-offs after announcing plans to raise $2.5 billion to purchase Bitcoin, with the stock price cumulatively dropping over 17%.

Overall, since 2025, DJT’s stock price has fallen by nearly 39%. The market generally adopts a cautious attitude towards the company’s policy uncertainties, fluctuating business strategies, and aggressive investment directions.

4. Can Bitcoin ETFs Turn the Tide?

The company’s management is trying to turn the situation around through diversification methods, with the most critical step being the submission of a Bitcoin ETF registration application to the U.S. Securities and Exchange Commission. If this application is approved, Trump Media may see a new growth point.

However, it is worth noting that the SEC currently conducts very strict reviews of cryptocurrency asset ETFs, with a lengthy and uncertain approval process. In the context of unclear regulations and the inherent volatility of the cryptocurrency market, excessive reliance on a Bitcoin strategy may actually increase the company’s risk exposure.

5. Risk Control Suggestions for New Investors

For new investors entering the market, “Trump Media shares slump as Musk-Trump feud” is a vivid case of risk education. The following suggestions may help you participate in the market more safely:

• Don’t be swayed by the emotional news, maintain rational analysis.
• Control your position and avoid heavy investment in a single high-volatility stock.
• Pay attention to changes in the fundamentals, not just political events.
• Long-term holding requires a deep understanding of the company’s business logic.
• It is recommended to allocate only a small proportion in personal investment portfolios.

Conclusion: In times of market turbulence, maintaining information sensitivity and calm judgment is a skill that every investor must cultivate. The story of Trump Media continues, and whether you can find your own investment rhythm in it is the key.