Trump Media & Technology Group, the parent company of Truth Social, has closed a $2.44 billion private placement offering to create a Bitcoin treasury. The company plans to use approximately $2.32 billion of the net proceeds to acquire Bitcoin and for general corporate purposes.
*Key Details:*
- *Offering Structure*: The deal consisted of selling 55.8 million shares of common stock at $25.72 per share and $1 billion in 0.00% convertible senior secured notes due 2028.
- *Bitcoin Custody*: (link unavailable) and Anchorage Digital will provide custody services for Trump Media's Bitcoin holdings.
- *Strategic Move*: This investment positions Trump Media among the top Bitcoin holders among publicly traded U.S. firms, with one of the most comprehensive Bitcoin treasury strategies.
- *Existing Holdings*: The company had $759 million in cash, cash equivalents, and short-term investments as of the end of Q1 2025.
- *Future Plans*: Trump Media aims to use its Bitcoin treasury to create synergies for subscription payments, utility tokens, and other transactions across its platforms ¹ ².
*Impact on Bitcoin:*
- The announcement has contributed to Bitcoin's price surge, with the cryptocurrency breaking the $110,000 resistance level.
- Trump Media's move is seen as a bold bet on crypto as a long-term store of value, reflecting growing institutional interest in digital assets ³.