- Trump Media & Technology Group (DJT) announced a $2.5 billion raise to create one of the largest Bitcoin (BTC) treasuries among public companies, causing shares to drop nearly 9% to $23.41.
- The funds, raised through $1.5 billion in stock and $1 billion in convertible notes, will support the company’s shift toward financial services, with Bitcoin held via Anchorage Digital and Crypto.com.
- Led by CEO Devin Nunes, the strategy aims to protect against financial institution pressures and drive synergies for Truth Social and Truth+, aligning with America First principles.
Trump Media & Technology Group (DJT) is making a bold pivot, announcing a $2.5 billion capital raise to establish one of the largest Bitcoin (BTC) treasuries held by a public company, with shares falling nearly 9% to $23.41 in Tuesday trading. The deal, comprising $1.5 billion in common stock and $1 billion in convertible notes, involves subscription agreements with approximately 50 institutional investors and is expected to close around May 29, 2025, pending standard conditions. This move marks a significant shift for the company, originally known for its free-speech social platform Truth Social, as it repositions itself as a financial services player within the America First economy. The proceeds will fund the acquisition of Bitcoin, which the company will hold as a core treasury asset, managed through custodians Anchorage Digital and Crypto.com, the latter also partnering with Trump Media on its recent exchange-traded fund launch.
CEO and Chairman Devin Nunes framed the Bitcoin treasury as a strategic defense against financial institution pressures, stating it will safeguard the company from harassment and discrimination while fostering synergies for subscription payments, a potential utility token, and other transactions across Truth Social and Truth+. This investment aligns with broader company goals to evolve into a holding company, pursuing additional profit-generating assets through mergers and acquisitions that reflect America First principles. The announcement coincides with Bitcoin 2025, a major conference in Las Vegas where President Donald Trump’s administration, including Vice President JD Vance, Don and Eric Trump, and crypto czar David Sacks, is prominently featured, reinforcing Trump’s image as a crypto-friendly leader.
Despite the ambitious strategy, Trump Media’s stock has faced challenges, with a year-to-date decline of 31% and a market capitalization of approximately $5.7 billion. Bitcoin’s price, nearing record highs at $111K, adds context to the company’s bet on cryptocurrency as a hedge against fiat risks and a tool for financial innovation. However, the stock’s volatility reflects investor concerns about the company’s unproven pivot and the inherent risks of such a significant Bitcoin allocation. This move positions Trump Media at the forefront of corporate cryptocurrency adoption, but its success will hinge on navigating market fluctuations and delivering on its expansive financial services vision.
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