Trump Media announced that it has entered into an agreement to sell a large number of shares to acquire Bitcoins worth over $2.3 billion. This will make its company one of the largest Bitcoin owners in the world.
The company's stock valuation increased after the announcement, but this may also provoke a political reaction in the crypto industry. For better or worse, the President's personal brand is significantly associated with Bitcoin.
Trump's media company is buying Bitcoin
President Trump has taken on many crypto projects, but his company's next plan could transform the entire industry. Rumors began earlier this week that Trump Media plans to buy Bitcoin, and the company has confirmed them.
Today's new press release showed that progress has occurred faster than expected, and the deal was completed:
"Trump Media announced today that it has completed the previously announced private placement with approximately 50 institutional investors. The offering consisted of [stock sales] with a total purchase price of approximately $2.44 billion. Trump Media will use approximately $2.32 billion in net proceeds from the offering to create a Bitcoin reserve," the statement reads.
Since MicroStrategy began to lead, more companies are becoming large Bitcoin owners. Shortly after the 2024 elections, Peter Schiff sarcastically suggested that Trump Media should buy Bitcoin, but it seems this comment is becoming a reality.
To be precise, the press release leaves some room for maneuver, and 100% of the proceeds may not go to this reserve. However, the third largest corporate Bitcoin owner, Riot, has less than $2 billion in tokens.
If Trump Media makes this Bitcoin purchase, it will immediately have a larger reserve than any other company except Marathon or MicroStrategy.
Since Trump Media announced this Bitcoin purchase, its stock price has increased by approximately 4%. Bitcoin has shown good results lately, demonstrating stable growth that has reduced its volatility over the past 90 days.
By buying now, Trump's private business is further committing to an industry that was a central part of his political administration. Of course, Trump Media has also faced its share of controversies, and this purchase may represent a conflict of interest. Cryptocurrency already constitutes a significant portion of Trump's net worth, which has drawn much criticism.
This purchase will further tie the Bitcoin ecosystem to Trump's personal brand, which may not always be beneficial.#TrumpMediaBitcoinTreasury #TrumpTariffs #BinanceSquare #CEXvsDEX101 #TradingTypes101 $BNB