Overview
Trump Media & Technology Group (TMTG), known for Truth Social, has recently announced plans to integrate Bitcoin into its financial strategy by creating a Bitcoin treasury. This move follows a capital raise and is part of a broader trend among companies holding cryptocurrency as a reserve asset.
Details of the Capital Raise
On May 30, 2025, TMTG closed a private placement offering, raising approximately $2.44 billion in gross proceeds, with net proceeds of about $2.32 billion designated for the Bitcoin treasury and other corporate purposes. This included selling 55,857,181 shares at $25.72 each and issuing $1 billion in convertible notes due 2028.
Strategy and Context
The strategy mirrors that of MicroStrategy, led by Michael Saylor, which has seen stock price increases by holding significant Bitcoin reserves. TMTG's move is seen as a leveraged bet on Bitcoin's price, potentially benefiting shareholders. The Bitcoin will be held in custody by Crypto.com and Anchorage Digital, enhancing TMTG's liquid assets to over $3 billion.
Implications and Controversy
While this positions TMTG as a top Bitcoin holder among U.S. firms, opinions vary. Some see it as a forward-thinking financial strategy, while others question its impact on stock volatility and long-term value.
Survey Note: Trump Media's Bitcoin Treasury Strategy
Trump Media & Technology Group (TMTG), the parent company of the social media platform Truth Social, has recently made headlines with its announcement on May 30, 2025, to create a Bitcoin treasury. This strategic move, detailed in a press release from GlobeNewswire, involves raising significant capital to invest in Bitcoin, aligning with a growing trend among corporations to hold cryptocurrency as a reserve asset. This survey note provides a comprehensive overview of the initiative, its financial implications, and the broader context, drawing from multiple sources including news articles and opinion pieces.
Background and Announcement
On May 30, 2025, TMTG closed a private placement offering, raising approximately $2.44 billion in gross proceeds, with net proceeds of about $2.32 billion. The funds are intended for creating a Bitcoin treasury and supporting general corporate purposes, including working capital. This announcement, covered by outlets such as CoinDesk and MarketWatch, positions TMTG as one of the largest Bitcoin treasury deals by a public company, with the company stating it will have more than $3 billion in liquid assets post-transaction.
The offering involved selling 55,857,181 shares of common stock at $25.72 per share, generating $1.44 billion, and issuing $1.00 billion in principal amount of convertible notes due 2028, with a conversion price of $34.72 per share. This transaction engaged approximately 50 institutional investors, with Yorkville Securities and Clear Street as lead placement agents, and Cantor Fitzgerald as the financial advisor.