The approval of Trump Media and Technology Group’s $2.3 billion Bitcoin Treasury deal by the U.S. Securities and Exchange Commission (SEC) marks a significant milestone for the company. The SEC declared effective the registration statement filed by Trump Media on June 6, allowing the company to move forward with the sale of securities. This deal, closed on May 30, saw approximately 50 investors participate in the resale of 56 million shares of equity and 29 million shares underlying convertible notes.
Trump Media, the company behind Truth Social, a platform significantly controlled by U.S. President Donald Trump’s family, is on a mission to aggressively expand its presence in the market. With the establishment of a Bitcoin Treasury, the company aims to diversify its balance sheet and provide shareholders with exposure to Bitcoin. The custody of Trump Media’s Bitcoin holdings will be managed by Crypto.com and Anchorage Digital, ensuring the security of the assets.
In a statement, Trump Media CEO Devin Nunes emphasized the strategic importance of the Bitcoin Treasury in defending the company against financial institutions’ discrimination. The move is also expected to facilitate subscription payments, utility token transactions, and other initiatives across Truth Social and Truth+, a streaming platform operated by Trump Media.
Aside from the Bitcoin Treasury, Trump Media is also venturing into the cryptocurrency market with the launch of a Bitcoin exchange-traded fund (ETF) named Truth Social Bitcoin ETF. This ETF, filed with the SEC on June 5, will be exclusively custodied by Crypto.com, providing investors with exposure to Bitcoin’s price performance.
One notable investor in Trump Media’s Bitcoin Treasury deal is Don Wilson, the CEO of DRW Investments. Wilson reportedly invested $100 million in the fundraising round, acquiring over 3.8 million shares in Trump Media. This significant investment has raised concerns about potential conflicts of interest, particularly given Wilson’s ties to Cumberland, a crypto liquidity provider that has benefited under the Trump administration.
Overall, Trump Media’s foray into the Bitcoin market signifies a strategic shift towards embracing digital assets and leveraging their potential for growth and diversification. With key partnerships in place and a clear vision for the future, Trump Media is poised to make a significant impact in the evolving landscape of cryptocurrency and digital finance.