Trump Media & Technology Group, the parent company of Truth Social, is making a significant move into the cryptocurrency space. Here's what's happening¹:
The Deal
- Trump Media has entered into subscription agreements with around 50 institutional investors to raise approximately $2.5 billion.
- The deal consists of $1.5 billion in common stock and $1 billion in 0.00% convertible senior secured notes.
- The transaction is expected to close on May 29, 2025, subject to standard conditions.
*Bitcoin Treasury*
- The company plans to use the proceeds to create a Bitcoin treasury, one of the largest among public companies.
- This move is seen as a strategic step to defend the company against financial institution harassment and create synergies across its platforms.
- (link unavailable) and Anchorage Digital will provide custody services for the Bitcoin treasury.
*Company's Vision*
- Trump Media's CEO, Devin Nunes, views Bitcoin as an "apex instrument of financial freedom".
- The company aims to integrate cryptocurrency functionality into its platforms, including subscription payments and utility token capabilities.
*Impact*
- This deal will increase Trump Media's total liquid assets to over $3 billion, including its existing cash and short-term investments of $759 million.
- The company's stock fell nearly 10% following the announcement, despite the ambitious plans for its Bitcoin treasury.
