Trump Media launched shares in the market for 50 institutional investors to capture historic value
Donald Trump smiling (Photo/X)
The company of U.S. President Donald Trump, Trump Media and Technology Group (NASDAQ: TMTG), announced the raising of $2.32 billion for the purchase of bitcoin, following the investment of 50 companies.
"Trump Media will use the approximately $2.32 billion in net revenue from the Offering to create a Bitcoin treasury and for other general corporate purposes and working capital," the company said in a market statement on Friday (30).
With the acquisition, TMTG intends to become one of the largest holders of bitcoin among publicly traded companies on the stock exchange.
Understand more details about the share launch in the market for the purchase of bitcoin by Donald Trump's company
The offer to the 50 institutional investors consisted of the sale of 55,857,181 ordinary shares of the Company, at a price of $25.72 per share, with gross revenue of approximately $1.44 billion.
Additionally, there was the issuance of guaranteed 0.00% convertible senior notes maturing in 2028, with a principal value of $1.00 billion, at a conversion price of $34.72 per share, with a total purchase price of approximately $2.44 billion.
Thus, Trump Media will use the approximately $2.32 billion in net revenue from the Offering to create a Bitcoin treasury and for other general corporate purposes and working capital.
The CEO and chairman of the board of Trump Media, Devin Nunes, stated that the company plans to acquire large assets. "Trump Media is focused on acquiring large assets, and this deal will give us the financial freedom to implement the rest of our strategies. This means the company will have over $3 billion in net assets and our shareholders will have exposure to Bitcoin. The deal positions Trump Media for the kind of rapid expansion we have always envisioned, and we are excited to move further in the America First economy."
Yorkville Securities, LLC and Clear Street LLC acted as co-lead placement agents, with BTIG, LLC and Cohen & Company Capital Markets serving as co-lead placement agents. Cantor Fitzgerald & Co. acted as financial advisor.
Nelson Mullins Riley & Scarborough LLP serves as legal advisor to TMTG. Finally, Reed Smith LLP serves as legal advisor to the Placement Agents.
Cryptocurrency broker will provide custody of the bitcoins
Crypto.com and Anchorage Digital will provide custody for Trump Media's Bitcoin treasury.
It is worth remembering that the company TMTG is already planning to launch a bitcoin ETF in the market, which with the new purchase should assist in the process.