Trump Media & Technology Group (TMTG), a company backed by US President Donald Trump, has made headlines with its recent announcement to raise $2.5 billion through a combination of stock and convertible note offerings in order to purchase Bitcoin. This move is aimed at positioning the firm as one of the top 10 corporate Bitcoin holders globally, competing with the likes of Strategy (formerly MicroStrategy) which currently holds over 580,000 BTC in its reserves.
The news of Trump Media’s planned BTC purchase caused a spike in the price of Bitcoin, pushing it above $110,000 after a period of sideways trading. However, the company’s own stock experienced an 8% drop, falling to $23.57 as of the latest data from Google Finance.
Under the terms of the fundraising round, TMTG will issue approximately $1.5 billion in common stock and $1 billion in zero-coupon convertible notes. The company has secured commitments from nearly 50 institutional investors and expects to close the round by May 29, subject to standard conditions. Additionally, TMTG has appointed Crypto.com and Anchorage Digital to custody the digital assets acquired through this initiative.
CEO of Trump Media, Devin Nunes, sees this move as a strategic step towards solidifying Bitcoin as a core holding in alignment with the company’s overall mission. Nunes emphasized that this investment will help protect the company against potential harassment and discrimination by financial institutions, which are issues faced by many Americans and US firms.
With approximately $759 million in various assets on its balance sheet, including cash, cash equivalents, and short-term investments, Trump Media is poised to deepen its involvement in the crypto space. Nunes revealed that the Bitcoin reserve acquisition is just the beginning of the company’s broader crypto plans, which include the development of a utility token and digital wallet to support its Truth+ streaming platform.
Furthermore, TMTG is collaborating with Crypto.com to launch a new range of exchange-traded products that combine digital assets like Bitcoin and Cronos with traditional financial instruments. This move is seen as a significant step forward in Trump Media’s evolution into a holding company focused on acquiring profit-generating assets in line with America First principles.
As the company continues to make strides in the crypto space, its innovative approach to integrating digital assets into its business model is likely to pave the way for further growth and success in the future.