Key takeaways
Why is NMAX investing in TRUMP alongside BTC?
NMAX’s TRUMP allocation is driven more by President Trump’s influence on the crypto market than a traditional risk/reward portfolio strategy.
Does the market support the allocation?
The broader market has decoupled from TRUMP’s rallies, with memecoin in a sustained downtrend and technicals pointing toward further declines.
Memecoins are not missing the institutional wave around Digital Asset Treasuries (DAT). Dogecoin (DOGE) was the first to spark this narrative, and now other meme assets are heading down the same path.
Recently, NewsMax (NASDAQ: NMAX) announced plans to allocate up to $5 million over the next 12 months to Bitcoin (BTC) and Official Trump (TRUMP). If executed, NMAX would join over 100 public companies holding BTC.
However, NMAX would also become the first NYSE-listed company to own TRUMP. Given the token’s high volatility, this move raises the question of whether it is a calculated move or simply a risky bet.
Breaking NMAX’s push into digital assets
Pairing BTC with TRUMP looks like a calculated risk management strategy.
From a portfolio perspective, BTC acts as a store of value while TRUMP adds a “high risk, high reward” component. Together, they provide an allocation that combines long-term exposure with short-term opportunities.
That said, Christopher Ruddy, CEO of NewsMax, noted that the move to TRUMP is largely influenced by President Donald Trump’s recent impact on the crypto market, which has helped generate significant bullish momentum.
“We are excited to add Trump Coin to our cryptocurrency plan, as we believe the coin’s value should follow the success of the Trump presidency, which has been impressive thus far.”
In short, NMAX, which regularly reaches nearly 40 million Americans, has built its DAT strategy around President Trump’s influence in the crypto market and, by extension, the dynamics of the TRUMP memecoin itself.
Notably, shortly after the announcement, one portfolio purchased $4 million worth of TRUMP, reflecting the initial bullish sentiment. However, the question is: do the technicalities justify this decision, or is it just a case of “blind optimism”?
The market avoids the trap of TRUMP memes
The connection between memecoin and President Trump appears to be losing ground.
Since the April FUD, TRUMP has been in a sustained downtrend, losing nearly 70% from its high of $16 and recently hitting an all-time low of $1.25 amid a market-wide sell-off.
From a technical point of view, the daily chart remains bearish. Since its $11 low in early May, TRUMP has formed five lows, recently breaking the $8 floor and entering the $1 zone, representing a 30% pullback.
Source: TradingView (TRUMP/USDT)
In short, the broader market is avoiding memecoin.
Even with President Trump’s support for the cryptocurrency (which the NMAX CEO highlights as the main driver of his DAT strategy), the meme asset has not seen a significant recovery, despite a 70% decline.
This indicates that the market has largely decoupled from short-term rallies in a highly volatile asset, making NMAX’s TRUMP exposure an extremely high risk allocation, with a risk/reward biased to the downside.
