The Trump Media and Technology Group has announced plans to raise $2.5 billion to invest heavily in cryptocurrency, particularly Bitcoin. The investment will be made through a private placement offering, comprising $1.5 billion in Trump Media common stock and $1 billion in convertible debt to 50 investors.
Creating a ‘Bitcoin Treasury’
The company aims to create a ‘Bitcoin Treasury’ to diversify its revenue and assets amidst rising token prices. Bitcoin will be held on Trump Media’s balance sheet alongside existing cash and short-term investments totaling $759 million as of the end of the first quarter. Anchorage Digital and Crypto.com will be responsible for holding the Bitcoin.
Trump’s Stance on Cryptocurrency
President Donald Trump, the majority owner of Trump Media, has been a proponent of Bitcoin and has pushed for its adoption in the United States. Earlier this year, he unveiled a crypto strategic reserve for the country, which would include Bitcoin, Ethereum, XRP, and other digital assets. Trump has also made significant moves in the cryptocurrency industry, including pardoning Silk Road’s creator and easing regulatory scrutiny for companies.
The investment is seen as a ‘big step forward’ towards acquiring ‘crown jewel assets consistent with America First principles,’ according to Trump Media CEO Devin Nunes. The company believes that Bitcoin is the ‘apex instrument of financial freedom.’ This move is also expected to help the company against ‘harassment and discrimination by financial institutions.’
The news comes after a dinner for the largest investors of the $TRUMP meme coin, with the Financial Times initially reporting that the company was planning to raise $3 billion. Trump’s World Liberty Financial (WLF) had also launched the $TRUMP meme coin for people to invest in and trade.
