Trump Media Pulls Back From Two Crypto.com Deals, Axios Reports
Key Takeaways
- •Trump Media is abandoning both a digital asset treasury initiative and a prediction betting platform that were being developed with Crypto.com.
- •The Cronos treasury deal was initially planned to be backed by $6.4 billion using Crypto.com's native token.
- •The withdrawal was attributed to competitive dynamics in a saturated market rather than regulatory concerns related to a president-backed crypto venture.
- •Digital asset treasury companies have seen stock performance decline amid a cryptocurrency price slump that began in October.
- •The prediction market sector faces unresolved regulatory scrutiny in the U.S., affecting platforms such as Polymarket and Kalshi.
Trump Media and Technology Group, the media company backed by President Donald Trump, is pulling back from two cryptocurrency deals with Crypto.com, according to a report by Axios published Friday.
The two deals — a prediction market and a digital asset treasury — will not move forward, Axios reported.
The decision was attributed to the increasingly saturated market for digital asset treasury companies over the past year, according to comments cited by Axios from Kevin McGurn, interim CEO of fusion energy company TAE.
Trump Media announced last year that it was collaborating with crypto exchange Crypto.com to build a Cronos treasury backed by $6.4 billion. Cronos is the native token of the Crypto.com platform. Later in 2025, Trump Media said it was also working with Crypto.com on Truth Predict, a betting platform that would allow users to wager on sports, elections, and other events.
Digital asset treasuries surged in popularity last year as companies followed the model pioneered by Nasdaq-listed software company Strategy (formerly MicroStrategy), which built its balance sheet around Bitcoin and other cryptocurrencies. However, a price slump since October has negatively affected the stock performance of several companies that adopted this approach.
McGurn was quoted as saying the decision to scale back was driven primarily by "competitive dynamics" rather than regulatory concerns tied to a crypto company backed by the president.
President Trump campaigned on promises to support the cryptocurrency sector and received endorsements from major industry participants. Since taking office, the president has launched a meme coin, and he and his family have backed the crypto project World Liberty Financial.
The pullback comes amid growing scrutiny of prediction markets in the United States. Platforms such as Polymarket and Kalshi have faced regulatory questions over whether their products qualify as licensed betting or trading venues, and Truth Predict would have entered a space where the legal framework remains unsettled.
Axios also noted that the exchange-traded funds launched last year through a partnership involving Trump Media, special purpose acquisition company Yorkville Acquisition Corp., and Crypto.com will continue operating.
Source: Axios