DJT Tanks 10% On Bitcoin Bet – Peter Schiff Warns Of Trump 'Front-Running The Reserve'
Trump Media & Technology Group (NASDAQ:DJT) plunged 10% after announcing a massive $2.5 billion private placement—money earmarked for one of the largest Bitcoin (CRYPTO: BTC) treasury buys by a public company.
While the company framed the move as a bold step toward "financial freedom," the market wasn't buying it and neither was economist Peter Schiff.
Schiff wasted no time slamming the deal on X, warning that Donald Trump's company may be "front-running the Strategic Bitcoin Reserve" using what he claims is taxpayer-fueled capital to inflate a market Trump may have already entered personally.
Big Bitcoin, Bigger Backlash
The deal, expected to close around May 29 involves issuing $1.5 billion in DJT stock and $1.0 billion in zero-coupon convertible notes. Trump Media says the capital will give it over $3 billion in liquid assets and lay the foundation for crypto-based subscriptions, utility tokens, and what CEO Devin Nunes calls "America First" business expansion.
But investors appear skeptical. The stock is now down more than 50% over the past year and 30% year-to-date. The sharp single-day sell-off underscores concerns that the company is pivoting too far into Bitcoin hype while revenue remains elusive.
Peter Schiff Sounds Off
Schiff, a longtime crypto critic, questioned both the strategy and ethics behind the move. "Maybe the markets don’t have the appetite for yet another Bitcoin treasury company," he said, adding a sharp jab: "How can Trump’s company front-run the Strategic Bitcoin Reserve, using taxpayers’ dollars to pump up what he bought first?"
Whether or not the front-running charge sticks, Schiff's comments have struck a nerve with traders already spooked by the risky pivot.
DJT Stock: Technicals Still Tempting Bulls
Chart created using Benzinga Pro
Despite the sell-off, DJT stock is showing some signs of underlying support. The stock is trading above a 50-day simple moving average of $22.45, offering short-term bullish signals. It still sits below the 200-day SMA, which remains a long-term bearish flag. The MACD (moving average convergence/divergence) indicator reads 0.47, and the RSI (relative strength index) at 46.16 is nearing overbought territory—but not quite there yet.
It's a mess of mixed signals. But one thing is clear: Trump Media just made its boldest bet yet. And for now, the market is calling its bluff.
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