PSQ Holdings, with Don Jr. as investor, intends to sell marketplace for patriots

Shares of small-cap PSQ Holdings (also known as PublicSquare), among whose shareholders is one of Trump's sons, is down 7% in premarket trading this morning, August 13, after the company announced a strategy change. It will focus on expanding its fintech operations and is likely to sell its other businesses, including its "patriotic" marketplace launched during the pandemic. As a result, PSQ Holdings has withdrawn its 2025 guidance.

Shares of PSQ Holdings have fallen about 7% to $1.85 per share in premarket trading today. In the regular session yesterday, the stock rose 1% to $1.98 per share.

Yesterday, the company announced a "strategic repositioning" to accelerate the growth of its fintech segment, including "embracing and implementing" cryptocurrency and decentralized finance assets.

The company's two other businesses – an online "patriotic" marketplace PublicSquare and a premium diaper and baby wipe brand called EveryLife – are to be sold. The company is currently "engaging with potential buyers" and plans to complete the process by the year-end.

Due to the strategy change, PSQ Holdings canceled its guidance for 2025. 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.

PSQ Holdings first announced its growing interest in the fintech segment in general and crypto in particular in May. On May 27, the stock soared more than 38% after the company's announcement that it would explore the possibility of investing its reserves in bitcoin, stablecoins, and other digital assets as a way to diversify its treasury and improve capital efficiency.   

Now, as part of the company's new strategy, it is developing cryptocurrency-based payment options that position the company "strongly" for a market moving "rapidly away from traditional payment rails and networks."

"An intentional focus on our bundled fintech offering, including payments, credit, cryptocurrency and decentralized finance solutions, represent the most scalable, high-margin avenue for sustainable growth," founder and CEO Michael Seifert was quoted as saying.

PSQ Holdings launched in 2021 with PublicSquare, a family-friendly marketplace with the ambition of becoming the “new Amazon.” Seifert, who speaks about “red America,” started with a simple idea: to offer patriotic buyers goods and services from sellers who share their values. The company’s five core values are family, freedom, a strong nation, support for small businesses, and a commitment to the Constitution. Seifert contrasts these values with “woke” ideas, like abortion rights and ESG and DEI policies. The company then expanded into new areas. PSQ Holdings operates three key divisions: the marketplace, the payments system, and the premium diaper and baby wipe brand.

Even before its public debut, PublicSquare attracted high-profile investors, including Donald Trump Jr., the son of the current U.S. president. 

Since the beginning of the year, PSQ Holdings shares have retreated more than 56%. However, the Wall Street analysts covering the stock see tons of upside. Their average target price of $6 per share, according to MarketWatch, implies upside of more than three times the last closing price.

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