On May 27, 2025, Trump Media & Technology Group (TMTG), the parent company of Truth Social, announced plans to raise $2.5 billion to invest in Bitcoin, establishing a "bitcoin treasury" as part of its financial strategy. The funding will be secured through the sale of approximately $1.5 billion in shares and $1 billion in zero-coupon convertible bonds to around 50 institutional investors via a private placement. The capital raise is expected to close by Thursday.
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CEO Devin Nunes described Bitcoin as an "apex instrument of financial freedom," emphasizing its significance in the company's asset portfolio. This move aligns with TMTG's broader strategy to evolve into a diversified holding company, incorporating financial services through its fintech division, Truth.Fi.
The announcement led to an 8% drop in TMTG's stock price, attributed to concerns over potential dilution from the new share issuance. Despite this, the initiative reflects a growing trend among corporations to integrate cryptocurrencies into their financial operations.
This development also coincides with President Trump's broader pro-crypto stance, including the establishment of a U.S. Strategic Bitcoin Reserve funded by seized assets. While supporters view these moves as positioning the U.S. as a leader in digital assets, critics raise concerns about potential conflicts of interest and the volatility associated with cryptocurrency investmen
ts.
