南帝一灯大师
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Trump Media Technology's $2.5 billion financing to buy Bitcoin, denies earlier then makes official announcement, stock price plummets 10.38%
On the evening of May 27, Trump Media & Technology Group announced a $2.5 billion financing plan to purchase Bitcoin to include in the company's treasury assets. The company has reached subscription agreements with about 50 institutional investors, planning to issue $1.5 billion in common stock and $1 billion in zero-coupon convertible bonds.
According to official documents, the financing is intended for the purchase of Bitcoin, to be held alongside existing assets, which totaled $759 million by the end of the first quarter of 2024.
It is worth noting that earlier that day, when the Financial Times reported related news, the company strongly denied it, only to officially announce it later that evening. Following the news, the company's stock price briefly rose in pre-market trading, but turned to decline after the market opened, closing down 10.38%, and has decreased by 31% this year. The price of Bitcoin once surpassed $110,000.
Trump Media Technology's move is said to emulate MicroStrategy's 'Bitcoin Reserve' strategy. Previously, MicroStrategy continuously purchased Bitcoin, raising funds through various financial instruments. Supporters of this strategy believe the risks are controllable, while critics argue that it could collapse if the market reverses.
Trump Media Technology Group is a company owned by Trump, who holds a 52.9% stake. The company has brands such as Truth Social, and last quarter had only $820,000 in advertising and other revenue, while suffering a loss of $32 million. This financing represents an important step into the cryptocurrency field, having previously disclosed plans for a utility token and reached a cooperation agreement with Crypto.com.
On the evening of May 27, Trump Media & Technology Group announced a $2.5 billion financing plan to purchase Bitcoin to include in the company's treasury assets. The company has reached subscription agreements with about 50 institutional investors, planning to issue $1.5 billion in common stock and $1 billion in zero-coupon convertible bonds.
According to official documents, the financing is intended for the purchase of Bitcoin, to be held alongside existing assets, which totaled $759 million by the end of the first quarter of 2024.
It is worth noting that earlier that day, when the Financial Times reported related news, the company strongly denied it, only to officially announce it later that evening. Following the news, the company's stock price briefly rose in pre-market trading, but turned to decline after the market opened, closing down 10.38%, and has decreased by 31% this year. The price of Bitcoin once surpassed $110,000.
Trump Media Technology's move is said to emulate MicroStrategy's 'Bitcoin Reserve' strategy. Previously, MicroStrategy continuously purchased Bitcoin, raising funds through various financial instruments. Supporters of this strategy believe the risks are controllable, while critics argue that it could collapse if the market reverses.
Trump Media Technology Group is a company owned by Trump, who holds a 52.9% stake. The company has brands such as Truth Social, and last quarter had only $820,000 in advertising and other revenue, while suffering a loss of $32 million. This financing represents an important step into the cryptocurrency field, having previously disclosed plans for a utility token and reached a cooperation agreement with Crypto.com.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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