Trump Media (DJT) announced an ambitious move to enhance its presence in the digital asset world, through a plan to establish one of the largest corporate Bitcoin treasuries, with investments estimated at 2.5 billion dollars.
Key details:
1. Financing:
1.5 billion dollars from issuing new shares.
1 billion dollars in convertible bonds (0% interest, 35% conversion premium).
Integrating it with current cash assets worth 759 million dollars, bringing liquid assets to 3 billion dollars.
2. Partnerships:
Collaboration with Anchorage Digital and Crypto.com to secure Bitcoin storage.
Planning to launch financial products such as ETFs and FinTech services through the Truth.Fi platform.
3. Strategic objectives:
Transitioning to a holding company that owns both digital and traditional assets.
Facing the financial challenges that conservative companies confront, according to statements by CEO Devin Nunes.
Reactions:
DJT shares fell by 6–10% after the announcement, amid concerns over dilution and market volatility.
Political support from the Republican Party, with participation from Vice President JD Vance and the Trump family in Bitcoin-related events.
Potential challenges:
Concentrating more than 80% of liquid assets in Bitcoin exposes the company to market volatility risks.
Expected regulatory controversy around ETFs, especially from regulatory bodies like Senator Elizabeth Warren.
General context:
A clear shift in Trump's stance from rejecting digital currencies in 2020 to supporting them as a means of financial freedom.
A strategy similar to MicroStrategy but with political support and a conservative grassroots base.
Why does this event matter to you?
This type of institutional movement enhances the adoption of Bitcoin as a legitimate financial asset.
It may drive other institutions towards similar steps, reshaping the relationship between media and financial policies.
Note: This content is not investment advice. Digital currencies are high-risk assets, and please conduct your own research before making any financial decisions.