The Trump family is making a big bet on cryptocurrencies.
On Monday, May 26, according to media reports, the Trump Media Group (DJT) plans to raise $3 billion, which will be directly used to purchase cryptocurrencies like Bitcoin, operating in a manner similar to the US-listed company MSTR, which financed aggressively to buy cryptocurrencies, turning itself into an 'alternative crypto asset ETF.' According to media disclosures, DJT's plan includes issuing $2 billion in new stock and another $1 billion in convertible bonds.
Media reports citing informed sources revealed that the originally planned fundraising scale has recently expanded, due to strong investor interest. However, the terms, timing, and amount of the financing are still subject to change. The plan is expected to be announced before the major crypto conference in Las Vegas this week. Donald Trump Jr., Eric, and Trump's cryptocurrency czar David Sachs, along with vice presidential candidate Vance, will attend the conference.
DJT, controlled by the Trump family, is the parent company of the 'Truth Social' App, directly connected to Trump. In response to the reports, the Trump Media Technology Group issued a statement saying the reporters are absurdly foolish, and the sources are even more foolish. However, the company did not outright deny plans to raise funds for purchasing cryptocurrencies.
Following the news, most cryptocurrencies rose, with Bitcoin briefly increasing over 2%, hovering around $110,000. Ethereum and XRP both surged over 1%, while Solana and Dogecoin rose more than 3%.
What is Trump planning to do?
The media pointed out that DJT's current share issuance is priced at market value, anchored to last Friday's closing price of $25.72 per share, with a total market capitalization of about $6 billion. ClearStreet and BTIG may serve as underwriters for this round of issuance.
This is not the first time the Trump family has used its fame to raise money, but DJT's method this time resembles 'MicroStrategy 2.0' (MicroStrategy is now called Strategy).
MSTR was originally a software company that raised funds through issuing bonds and stocks, purchasing billions of dollars in Bitcoin in one go, with its market value skyrocketing from obscurity to over $100 billion, becoming a top-tier player in the crypto valuation market.
Analysts point out that DJT's timing is not accidental, as Bitcoin has just surpassed its historical high of $109,000. The Trump family is clearly taking advantage of the 'bull market's restart' to make a major entry through DJT, hoping to replicate the wealth myth of MSTR's market cap.
Moreover, DJT also plans to launch a cryptocurrency-themed ETF, allowing ordinary investors to purchase the selected crypto asset portfolio through brokerage platforms, creating a complete ecosystem of 'crypto + stock market.'
In fact, the Trump family has already formed deep connections with crypto assets. Including NFT trading cards, meme coins, stablecoins, and mining projects, the Trump family has deeply engaged in the crypto space. Last week, Trump hosted a banquet at his private resort for the financiers of his memecoin, further strengthening alliances with core users in the crypto circle.
However, this series of operations has also raised concerns from the outside. The media pointed out that the president's family personally participating in cryptocurrency purchases, influencing regulations, and leading policy direction raises suspicions of using policies for personal gain, especially in the context of his public declaration to make the US the 'global cryptocurrency capital', where the boundaries between politics and business are increasingly blurred.
The intersection of politics, business, and cryptocurrency
The media reported that after being re-elected president last year, Trump transferred his 53% stake in DJT (valued at about $3 billion) into a revocable trust, fully controlled by his son Donald Jr. for investment and voting rights. On the surface, there appears to be a separation between politics and business, but in reality, the equity remains firmly in the family's hands.
Meanwhile, political and business capital is accelerating its entry into the crypto market. Brandon Lutnick, son of US Commerce Secretary Howard Lutnick, is managing a SPAC (shell company) that has teamed up with Tether and SoftBank to launch a Bitcoin investment platform called Twenty One Capital, valued at up to $3.6 billion.
The cryptocurrency company Ripple acquired the digital currency brokerage Hidden Road for $1.25 billion, betting that institutional funds will flood into crypto assets during the 'Trump era.' Several industry executives indicated that a similar wave of mergers and acquisitions in the crypto circle is expected to erupt in the coming weeks, especially the combination of 'shell companies + crypto projects.'