Newsmax will buy $5 million worth of Bitcoin and Trump Coin.

U.S.-based media giant Newsmax has made a significant move in the cryptocurrency market by announcing that it will acquire 5 million dollars worth of Bitcoin and Trump Coin (TRUMP) within the next 12 months. This move is regarded as part of the company's strategy to build a digital asset reserve and has sparked interest among investors.

Newsmax Inc, which is traded on the New York Stock Exchange, stated in an official announcement on Thursday that it aims to create a "Digital Asset Treasury." In line with the company's plan, this treasury will be supported by Bitcoin (BTC) and the official meme coin of former President Donald Trump, Trump Coin (TRUMP). The Newsmax board approved a cryptocurrency purchase program that could total up to 5 million dollars, thus solidifying its place in the industry.

Newsmax CEO Christopher Ruddy described Bitcoin as the "gold standard of cryptocurrencies," emphasizing that adding this asset to the company's reserves is a strategic move. Ruddy expressed optimism for investors, stating, "We believe Trump Coin’s value will rise in parallel with Trump’s performance during his presidency."

On the other hand, Trump Coin was launched before President Donald Trump’s inauguration and garnered significant interest at that time. However, this token has faced a continuous decline since then. According to data from The Block, Trump Coin is currently trading at around 5.73 dollars; with a market capitalization of 1.1 billion dollars and a fully diluted valuation of 5.7 billion dollars.

Newsmax shares experienced approximately a 2.5% increase in value following this announcement on Friday, bringing the company’s total market value to 1.4 billion dollars. The company had raised 300 million dollars during its initial public offering in March, but since then, its shares have lost over 80% of their value.

In conclusion, while the Bitcoin price dipped below 104 thousand dollars earlier in the week, a sense of "extreme fear" prevails in the general markets. Nevertheless, Newsmax's cryptocurrency investment signals that institutional purchases may regain momentum. This situation stands out as a critical point for investors to monitor.