Before Donald Trump was president, I covered many different announcements from the man.
That included the opening of Doral in Miami, Florida, the Trump Hotel in Washington, D.C., the golf course in Aberdeen, Scotland, and many others.
I’ve been on The Apprentice set, and I even witnessed Trump announce his election to run for office in 2015.
All these announcements were somewhat predictable.
After all, I had been in close contact with Trump. I usually knew what to expect. I even knew Trump was running for office before most people. He asked me my opinion long before his official announcement.
But this announcement really surprised me…
DJT Bets Big on Fusion
The news yesterday was that Trump Media & Technology (DJT) is merging with TAE Technologies in a $6 billion deal.
That came out of left field. After all, we’re dealing with a public company and the Securities and Exchange Commission (“SEC”).
For a bit of context, TAE is a company that focuses on nuclear fusion technology. Fusion is different than traditional nuclear fission power, which generates power from splitting atoms. As the name suggestions, fusion combines atoms to generate power. Put even more simply, it’s the power of the sun.
If achieved at scale, fusion has some breathtaking implications – virtually limitless, clean energy to power the world for years to come.
TAE is a global leader in fusion power with five reactors built to date that targets utility-scale power generation.
Looking into TAE, there’s no question that the company has a track record for innovative value creation. The company touts four Nobel Prize laureates, eight-plus U.S. Department of Energy awards, eight scientific awards, and seven Maxwell Prize winners.
More impressive, TAE has over 1,600 patents granted for licensing of proprietary products with a track record of innovation that could lead to future value creation.
Source: DJT Investor Deck
Nonetheless, as impressive as TAE is, why the heck is DJT considering this merger?
An Unlikely Couple
To date, DJT is still a special purpose acquisition company that owns a social-media platform (Truth Social), streaming platform, financial services, and a financial technology brand (incorporating America-first investments).*
TAE, as we just covered, is a young company with an ambitious goal of realizing nuclear fusion at scale.
At first glance, it seems like an odd paring…
But the answer is actually simple: TAE needs capital to build nuclear fusion reactors.
The company is targeting fusion-generated electricity in 2031, or five years from now. And to accomplish that goal, it’s going to need funding. DJT can provide it.
According to filings, TAE is receiving up to $300 million in cash before the deal closes (DJT has roughly $850 million in cash and short-term investments) and the merger will be formed by 50% DJT shareholders and 50% of TAE shareholders.
DJT’s CEO Devin Nunes and TAE’s CEO Michl Binderbauer will become co-CEOs. The deal should close in mid-2026, subject to closing conditions and shareholder approval (by both companies).
Now, keep in mind, $300 million is not enough to build a nuclear fusion reactor.
Washington-based Helion raised $425 million in January in a Series F round that brought total funding over $1 billion with the goal of being the first to produce usable electricity through nuclear fusion.
So, $300 million is just a down payment. TAE will need an almost infinite supply of cash to capitalize on its mission.
DJT investors appeared to like the announcement – the stock is up about 44% on the news.
But, before you rush in, a word of caution.
A Long Road Ahead
DJT investors are simply buying into the hype. Yes, it is a big development.
But to date, there’s no land, no buildings, and no commercial fusion reactor… just some very impressive intellectual property.
I recently wrote an article explaining why I don’t invest in IPOs and start-ups. I specifically called out data-center startup Fermi (FRMI), which has seen its shares plummet from over $30 to a recent close of $8.22. Ouch!
But as you can see below, investors are piling into DJT on the news of a new shiny toy.
Keep in mind, DJT is a special purpose acquisition company in which Donald Trump’s ownership stake is held in a trust (managed by Donald Trump Jr.) that is now valued at more than $6 billion (combined entity).
Clearly, this valuation isn’t justified based on existing DJT’s revenue, which is less than $4 million annually, and TAE’s impressive intellectual assets.
Obviously, the Trump family wins here as their 52% stake in DJT increased by more than $500 million as a result of the merger deal with TAE.
In addition, TAE is also a winner with the deal as the company now has a quicker path to liquidity, with obvious benefits to being able to scale the fusion business without waiting for SPAC approval or listing shares.
But I’m not so sure DJT shareholder win here… at least not yet.
At Wide Moat Research, we focus on cash flow investing and assets that create shareholder value. While I agree that energy independence is critical to maintaining American dominance, there’s still a long road ahead before this new company can generate fundamentals that justify its lofty price tag.
I continue to believe there are better opportunities with real assets that are generating stable and reliable cash flow.
And with that in mind, there’s one more development from Trump that you should know about…
Trump’s Final Real Estate Deal
Love him or hate him, everyone knows that President Donald Trump loves real estate. And for decades, his biggest real estate deals were exclusively for insiders.
His next deal is different.
Because it opens up an incredible investing opportunity for every American citizen… And you can get started with just a few hundred dollars.
I know that sounds crazy…
But I’ve served as a presidential advisor, and I’ve been part of Trump’s inner circle for over a decade. That’s how I know America is sitting on one of the greatest untapped real estate fortunes on the planet…
More than 259 million hectares of land – worth an estimated $5.1 trillion – much of it locked away by restrictive policies imposed by Obama and Biden…
But with Executive Order 14318, President Trump just began unlocking these valuable assets… for you to share in the riches.
It’s a way for ordinary folks to stake their claim in our country’s most valuable real estate. Real estate that is their birthright as Americans…
But you must act quickly…
The time to stake your claim is now, before the mainstream catches on and the best opportunities vanish.
Click here to learn all the details, including…
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The full story behind Executive Order 14318, and how it legally forces the government to “parcel and divide” its most valuable properties for the American taxpayer.
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The simple way you can “stake a claim” in this portfolio of prime real estate with a regular brokerage account, no special access needed.
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And my No. 1 recommended investment. I won’t just reveal exactly what it is, but I’ll also give you the complete, step-by-step instructions on how to stake your claim.
And I’m giving you that entire plan – FOR FREE – right here in this video.
Regards,
Brad Thomas
Editor, Wide Moat Daily
*Disclosure: I am co-owner of an exchange-traded fund index that is affiliated with DJT’s financial services and fintech business. I do not own shares of DJT.
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