On# May 27, 2025, Trump Media & Technology Group (TMTG), the parent company of Truth Social, announced plans to raise approximately $2.5 billion to establish a bitcoin treasury. This strategic move aligns with President Donald Trump's vision of positioning the United States as the "crypto capital of the world."
The fundraising initiative comprises $1.5 billion from a private placement of common stock and $1 billion through convertible bonds. Approximately 50 institutional investors are participating in this offering, which is expected to close by May 29. The acquired bitcoin will be held in custody by Anchorage Digital and Crypto.com.
TMTG's CEO, Devin Nunes, emphasized that this investment in bitcoin is viewed as an "apex instrument of financial freedom." He stated that the move would help defend the company against potential discrimination by financial institutions and support future initiatives, including subscription services and utility tokens across its platforms, Truth Social and Truth+.
Despite the ambitious announcement, TMTG's stock experienced significant volatility, initially rising 15% in premarket trading before falling 10% after market open, closing at $23.19. The stock has declined 27% year-to-date.
This move by TMTG mirrors strategies employed by other corporations, such as MicroStrategy, which have integrated bitcoin into their treasuries. It also reflects the Trump family's increasing involvement in the cryptocurrency space, including ventures like World Liberty Financial and the launch of the $TRUMP meme coin.
The initiative has drawn scrutiny from regulators and ethics experts, particularly concerning potential conflicts of interest and the broader implications of intertwining private enterprise with government policy.
As the cryptocurrency market continues to evolve, TMTG's substantial investment in bitcoin underscores the growing trend of corporate adoption of digital assets and the ongoing debate surrounding their role in the financial system.
