Quick take:
The company is also targeting to raise $1 billion in principal amount from issuing convertible notes, bringing the total raised to $2.5 billion.
Trump Media and Technology Group plans to use the capital raised to create a Bitcoin treasury.
The offering is expected to close on May 29 after fulfilling customary closing conditions.
The announcement follows reports on Monday, which claimed the company was raising $3 billion to invest in Bitcoin and other cryptocurrencies.
Trump Media and Technology Group Corp. (Nasdaq, NYSE Texas: DJT) has secured $2.5 billion in funding via a private investment in a public company (PIPE) offering.
The company said on Tuesday that it has entered into subscription agreements with over 50 institutional investors to raise approximately $1.5 billion from the sale of its common stock. Trump Media is also targeting to raise $1 billion in principal amount from issuing convertible notes.
The offering is expected to close on May 29 after fulfilling customary closing conditions. It comes barely a day after the Trump Media branded reports from the Financial Times on Monday that “it was raising $3 billion to invest in Bitcoin and other cryptocurrencies” as dumb.
The company plans to use the capital to create a Bitcoin treasury, whilst also closing Trump Media’s previously announced special acquisition fund, which planned to invest using a variety of vehicles, including mergers and acquisitions.
Commenting on the announcement, Trump Media’s CEO and Chairman Devin Nunes emphasised the company’s views on Bitcoin calling it the apex of financial freedom, and will now form a crucial part of Trump Media’s crypto assets.
“Our first acquisition of a crown jewel asset, this investment will help defend our Company against harassment and discrimination by financial institutions, which plague many Americans and U.S. firms and will create synergies for subscription payments, a utility token, and other planned transactions across Truth Social and Truth+.” said Nunes. “It’s a big step forward in the Company’s plans to evolve into a holding company by acquiring additional profit-generating, crown jewel assets consistent with America First principles.”
According to a press release seen by NFTgfators, crypto exchange company Crypto.com and digital asset investment company Anchorage Digital will provide custody for Trump Media’s Bitcoin treasury.
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The post Trump Media Secures $2.5 Billion Warchest to Establish Bitcoin Treasury appeared first on NFTgators .
