Trump Media to Raise $2.5 Billion for Bitcoin Investment
Trump Media and Technology Group, the company behind former U.S. President Donald Trump’s social media platform Truth Social, announced plans to raise approximately $2.5 billion to invest in bitcoin. The move aligns with a growing trend among public companies adding cryptocurrency to their balance sheets.
The funding will be achieved through the sale of $1.5 billion in stock at the last closing price and $1 billion in convertible notes priced at a 35% premium. As of the end of the first quarter, Trump Media held $759 million in cash and short-term investments, which will be supplemented by the new bitcoin holdings.
Crypto platforms Anchorage Digital and Crypto.com will provide custody for the bitcoin holdings. Trump Media CEO Devin Nunes stated that the company views bitcoin as an “apex instrument of financial freedom” and considers this investment a significant step in acquiring assets aligned with “America First principles.”
This move follows other companies like MicroStrategy, formerly known as Strategy, which has aggressively invested in bitcoin. The company’s shares soared more than six-fold last year, reaching a market value of almost $94 billion. Other firms, including GameStop and several biotech companies, have attempted to replicate this success.
The Trump family’s foray into cryptocurrency has drawn scrutiny from lawmakers, including Democratic Senator Elizabeth Warren, who questioned the U.S. securities regulator about its plans to oversee ETFs associated with Trump Media’s crypto ventures.
Trump Media’s shares were down 8% following the announcement. The company has been exploring mergers and acquisitions to diversify into financial services, including a recent agreement to launch retail investment products aligned with Trump’s policies.
