Trump Media says the money will be used to create a ‘Bitcoin treasury’.
The Trump Media and Technology Group will raise about $2.5bn to invest in Bitcoin, United States President Donald Trump’s social media firm says, as it looks to diversify its revenue streams with a push into the financial sector.
The company is raising the funds by selling $1.5bn in stock at its last closing price and $1bn in convertible notes priced at a 35 percent premium, it said in a statement on Tuesday. The money will be used to build a “Bitcoin treasury”, the company said.
The Bitcoin will be held on Trump Media’s balance sheet alongside existing cash and short-term investments totalling $759m at the end of the first quarter. Crypto platforms Anchorage Digital and Crypto.com are to provide custody for the Bitcoin holdings.
“We view Bitcoin as an apex instrument of financial freedom,” Trump Media CEO Devin Nunes said, hailing the move as a “big step forward” in the company’s plan to acquire “crown jewel assets consistent with America First principles”.
Shares of the company behind Truth Social, a streaming and social media platform, were down 6 percent in early trading.
Trump Media has been exploring potential mergers and acquisitions as it aims to diversify into financial services.
Last month, it reached a binding agreement to launch retail investment products, including cryptocurrency and exchange-traded funds aligned with Trump’s policies.
Embracing cryptocurrencies
The Trump family, long rooted in skyscrapers and golf clubs, has opened multiple beachheads in cryptocurrencies, quickly gaining hundreds of millions of dollars. Its other crypto forays include Trump nonfungible tokens (NFTs), a meme coin, a stake in a newly formed Bitcoin producer called American Bitcoin and the cryptocurrency exchange World Liberty Financial.
But the crypto push has attracted scrutiny from lawmakers, including Democratic Senator Elizabeth Warren, who last month asked the US securities regulator about its plans to supervise exchange-traded funds (ETFs) due to be launched by Trump Media.
Trump, who referred to cryptocurrencies in his first term as “not money”, citing their volatility and a value “based on thin air”, has shifted his views on the technology.
During an event at his Mar-a-Lago club in Florida during his presidential campaign in May 2024, Trump received assurances that crypto industry backers would spend lavishly to get him re-elected.
Last week, Trump rewarded 220 of the top investors in one of his other cryptocurrency projects, the $Trump meme coin, with a swanky dinner with him at his luxury golf club in northern Virginia, spurring accusations that the president was mixing his duties in the White House with personal profit.