Trump Media Considers Truth Social Spinoff as Separate Public Entity Following Crypto ETF Filings

Trump Media & Technology Group (DJT) announced on February 27, 2026, that it is considering spinning off its Truth Social platform into an independent publicly traded company, with shares to be distributed to existing DJT shareholders prior to the firm’s planned merger with fusion energy company TAE Technologies.

The proposed transaction would create separate pure-play entities while the parent company’s digital asset initiatives, including previously filed Bitcoin and cryptocurrency ETF applications and a planned shareholder token airdrop with Crypto.com, remain under review.

Proposed Transaction Structure

Trump Media & Technology Group outlined a potential restructuring that would separate its social media operations from other business lines.

The proposed transaction involves:

• Creation of SpinCo, a new entity that would house Truth Social and other unspecified Trump Media businesses

• A subsequent merger between SpinCo and Texas Ventures Acquisition III Corp, a blank-check company

• Distribution of SpinCo shares to existing DJT shareholders prior to the closing of Trump Media’s merger with TAE Technologies

• Retention of certain assets and business lines by the original Trump Media entity, though specific details on which operations would remain have not been disclosed

The company stated that the contemplated transaction is “intended to create shareholder value through the creation of pure play companies, each with distinct strategies,” allowing investors to separately value the social media platform and the parent company’s remaining operations.

Merger Timeline and TAE Technologies Integration

The proposed spinoff is contingent upon the completion of Trump Media’s previously announced merger with TAE Technologies, a power fusion company.

Current status of the merger process:

• The Trump Media-TAE Technologies merger remains pending with an expected closing in mid-2026

• Shareholder distributions for the Truth Social spinoff would occur after the TAE merger closes

• Texas Ventures III would serve as the merger vehicle for the standalone Truth Social entity

The sequencing of transactions indicates that Truth Social would become an independent public company only after the broader corporate restructuring with TAE Technologies is complete.

Digital Asset and Cryptocurrency Initiatives

Trump Media has pursued multiple cryptocurrency-related initiatives over the past year, though the company has not clarified whether these would remain with the parent entity or transfer to the Truth Social spinoff.

Previous crypto-related filings and announcements include:

• June 2025: Filing for a Bitcoin ETF with US regulators

• 2025: Filing for a multi-asset crypto blue chip ETF including Ethereum, Solana (SOL), and XRP

• Early 2026: Filings for joint Truth Social-branded Bitcoin and Ethereum ETFs

• 2026: Filing for an ETF centered on the Crypto.com-linked token, CRO

• Balance sheet allocation: Authorization of $2 billion for Bitcoin and Bitcoin-related securities to “protect itself from discrimination from financial institutions”

The company is also working with Crypto.com on a digital token that would be airdropped to Trump Media shareholders as part of broader efforts to adopt cryptocurrency infrastructure across its business. The deadline for broker participants to provide shareholder information passed earlier in March 2026, though the token has not yet been distributed.

A representative for Trump Media did not immediately respond to requests for clarification on whether these crypto initiatives would remain with the parent company or transfer to the Truth Social spinoff.

Market Performance and Shareholder Impact

The announcement did not generate positive momentum for DJT shares in initial trading.

Current trading data:

• Shares declined approximately 2.10% on the announcement date amid broader market declines

• DJT has fallen roughly 40% over the past six months

• Stock recently traded around $10.73 per share

• Trading remains volatile, with shares well off highs above $100 recorded in 2022

President Donald Trump, the majority shareholder of Trump Media, stated following his 2024 electoral victory that he would not sell his stake in the company. Regulatory filings later that year showed Trump transferred his entire position to a revocable trust for which he serves as the sole beneficiary.

Truth Social Platform Context

Truth Social was launched as a free speech-focused social media platform following Trump’s temporary bans from Twitter and Facebook after the January 6, 2021, Capitol incident. Trump Media has positioned the platform as a counter to what it views as an “assault” on free speech by major technology firms.

Platform significance includes:

• Primary communication channel for President Trump, who has used Truth Social to announce policy positions, economic data, and other official statements

• Trump previewed federal economic data on Truth Social ahead of its official release in March 2026

• Trump has encouraged supporters to use the platform as its parent company’s stock has experienced price volatility

Spinning off Truth Social into a separate public entity would bring additional market attention to the platform’s operational performance and user metrics as an independent company.

Regulatory and Compliance Considerations

The proposed transaction structure involves multiple corporate actions that may require regulatory review.

Potential regulatory considerations include:

• SEC review of shareholder distribution mechanics and disclosure requirements

• Compliance with exchange listing standards for any new public entity

• Regulatory treatment of cryptocurrency initiatives in relation to corporate restructuring

• Tax implications of the spinoff for existing shareholders

The company has not indicated whether it has sought or received regulatory guidance on the proposed transaction structure.

Frequently Asked Questions (FAQ)

What is Trump Media proposing to do with Truth Social?

Trump Media & Technology Group (DJT) is considering spinning off Truth Social into an independent public company called SpinCo, which would then merge with Texas Ventures Acquisition III Corp. Shares would be distributed to existing DJT shareholders after the company completes its merger with TAE Technologies.

How will the proposed spinoff affect Trump Media’s cryptocurrency initiatives?

It remains unclear whether Trump Media’s previously filed Bitcoin and cryptocurrency ETF applications, $2 billion Bitcoin treasury authorization, or planned Crypto.com shareholder token airdrop would remain with the parent company or transfer to the Truth Social spinoff. The company has not provided clarification on this point.

When would Truth Social become a standalone public company?

The spinoff is contingent upon closing of Trump Media’s merger with TAE Technologies, which is expected in mid-2026. Shareholder distributions for the new Truth Social entity would occur after that merger is complete, meaning the platform would not become independent until the second half of 2026 at the earliest.