Trump Media and Technology Group disclosed Friday it is in talks to spin off Truth Social into a separate publicly traded company, a structural overhaul that would take effect after its pending merger with fusion energy firm TAE Technologies closes - currently expected in mid-2026.
No definitive agreement has been reached, and the companies cautioned there is no assurance a transaction will occur.
DJT shares traded around $11 Friday, down roughly 40% over the past six months.
The announcement describes a three-way restructuring involving TMTG, TAE Technologies, and Texas Ventures Acquisition III, a blank-check SPAC. Under the contemplated plan, Truth Social and related media assets would be separated into a new entity called SpinCo, with shares distributed to existing TMTG shareholders before the TAE merger closes.
SpinCo would then merge with Texas Ventures III. TAE's businesses, along with some of TMTG's existing assets, would remain within the continuing public company.
The TAE Merger as Backdrop
TMTG announced its merger with TAE Technologies in December 2025 in an all-stock transaction valued at more than $6 billion, with each company's shareholders owning roughly 50% of the combined entity at closing.
TAE, founded in 1998, has raised more than $1.3 billion from backers including Google and Goldman Sachs and operates subsidiaries in energy storage and cancer treatment technology. The deal would give fusion power its first exposure to public markets.
The merger remains subject to shareholder and regulatory approvals.
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Crypto Holdings Left Unclear
The announcement did not specify which assets would follow Truth Social into SpinCo or remain with the TAE-merged entity - leaving the fate of TMTG's cryptocurrency holdings unresolved.
The company currently holds approximately 11,542 Bitcoin, worth around $756 million. It has filed for a Bitcoin (BTC) ETF and a crypto blue-chip ETF under its Truth.Fi brand, covering Ethereum (ETH), Solana (SOL), and XRP.
TMTG is also working with Crypto.com on a digital token airdrop for DJT shareholders; the record date for the initiative was Feb. 2, though the token has not yet been distributed.
Whether crypto assets and ETF filings would reside in SpinCo or remain with the nuclear-focused successor entity was not addressed in the announcement.