Quotes of the small-cap marketplace PSQ Holdings (PublicSquare), whose shareholders include Donald Trump Jr., plunged more than 25% yesterday, September 25. The trigger was the announcement of a crypto treasury service.

Details

PublicSquare (PSQ Holdings) shares fell 25% to $2.10 per share yesterday, September 25. Trading volume reached 8.3 million shares, almost seven times the daily average, according to Yahoo Finance.

Earlier, PSQ Holdings announced the launch of crypto "Treasury as a Service" (TaaS) in partnership with advisory firm IDX Advisors. The outsourcing will provide secure custody, seamless crypto-to-fiat conversion, automated compliance, and yield on idle assets, the company promises.

“In short, our merchants gain the ability to act as their own banks while capitalizing on the rapid growth of crypto finance,” the announcement stated.

It emphasized this will come "without reliance on vulnerable, centralized intermediaries." By decentralizing custody, payments, and liquidity, TaaS is said to give companies a "cancel-proof financial backbone."

"The economy as we know it is shifting at lightning speed... We’re not content to simply hold digital assets; we intend to monetize every transaction, every service, and every opportunity this transformation creates," said Michael Seifert, chair and CEO of PublicSquare

About PublicSquare

PSQ Holdings launched in 2021 with PublicSquare, a family-friendly marketplace with the ambition of becoming the “new Amazon.” The company then expanded into new areas: PSQ Holdings now operates three key divisions: the marketplace, the payments system, and the premium diaper and baby wipe brand EveryLife. Even before its public debut, PublicSquare attracted high-profile investors, including Donald Trump Jr., the son of the current U.S. president. 

In May, the company announced it would explore the possibility of investing its reserves in bitcoin, stablecoins, and other digital assets as a way to diversify its treasury and increase capital efficiency. Then, in August, it announced a strategy change to focus on expanding its fintech operations and is likely to sell its other businesses, including the "patriotic" marketplace and EveryLife.  

As a result, PSQ Holdings has withdrawn its 2025 guidance. For the second quarter, it reported 18% year-over-year revenue growth to $7.1 million, as well as an improving loss per share of $0.18 versus $0.36 for the same period in 2024.

Context

PublicSquare announced the TaaS launch amid growing attention from U.S. regulators toward crypto. The SEC and FINRA (Financial Industry Regulatory Authority) have recently reached out to some of the more than 200 companies that announced this year that they would adopt a crypto-treasury strategy, sources told the Wall Street Journal. They have raised concerns about what they say were unusually high trading volumes and sharp stock-price gains in the days leading up to the companies’ announcements, amounting to potential violations.

The AI translation of this story was reviewed by a human editor.

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