New York
CNN
—
The owner of “woke-free” online marketplace PublicSquare exploded in value on Tuesday on news that Donald Trump Jr. is joining the tiny company’s board of directors.
A person familiar with the matter confirmed to CNN that Trump Jr. is set to join the board of PSQ Holdings, PublicSquare’s parent company. The arrival of Trump Jr. was first reported by Bloomberg News.
That news catapulted the value of PSQ Holdings by around 90%, from $72 million as of Monday’s closing bell to about $135 million on Tuesday afternoon.
The West Palm Beach, Florida-based company has not officially announced any changes to its board.
Michael Seifert, its founder and CEO, declined to comment on the report.
PublicSquare has described itself as “America’s woke-free marketplace,” a platform that connects shoppers with “valued-aligned businesses that refuse to succumb to the progressive ideology overtaking corporate America.”
The company says its commerce and payments ecosystem serves “customers and businesses that value life, family and freedom.” Beyond the “family-focused” marketplace, the company includes “cancel-proof” fintech and wholly-owned brands.
“We have experienced explosive growth” since launching in 2022, Seifert told CNN in an email, noting that revenue has increased from $500,000 in 2022 to $6.5 million last quarter alone.
The board of PSQ Holdings includes a number of prominent Republicans, including former Nick Ayers, the former chief of staff to Vice President Mike Pence; former US Senator Kelly Loeffler; Blake Masters, who ran unsuccessfully for Arizona’s US Senate seat; and former Bank of America hedge fund executive Omeed Malik.
Malik is the president of 1789 Capital, an anti-ESG venture capital firm that Trump Jr. has reportedly joined.
Steve Sosnick, chief strategist at Interactive Brokers, said investors are betting “there is some advantage to be gained by having the incoming president’s son as a company insider.”
“Don Jr. would of course have exceptional access to the leader of the free world, which could have inordinate benefits to otherwise small and somewhat obscure companies if that leads to greater exposure and access to government contracts,” Sosnick told CNN in an email.
A similar story played out last week in another little-known stock.
Shares of drone maker Unusual Machines skyrocketed 85% on Nov. 27 after the Orlando firm announced that Trump Jr. joined its advisory board. The company surged by another 89% the following day.
“The need for drones is obvious. It is also obvious that we must stop buying Chinese drones and Chinese drone parts,” Trump Jr. said in the press release. “I love what Unusual Machines is doing to bring drone manufacturing jobs back to the USA and am excited to take on a bigger role in the movement”.
Unusual Machines, like other companies that rely on imports from China, has warned its business could be hurt by tariff hikes on China.
President-elect Donald Trump said last week that he would lift tariffs on China by another 10% on his first day in office unless Beijing cracks down on fentanyl drug trafficking.
Over the weekend, Trump threatened to impose 100% tariffs on China, Russia and other BRICS nations unless they promise not to create a new currency or back a replacement to the US dollar.