Original SuperEx Blockchain 2025-06-03 11:40 Hong Kong, China
This is the 2041st issue of Blockchain in Plain Language
Author | SuperEx
Translation | Blockchain in Plain Language (ID: hellobtc)
Trump's iconic 'policy flip style' seems to be playing out again—this time within his own business group. Just days ago, Trump Media & Technology Group (TMTG) denied any such deal. However, on May 27, it officially confirmed a $2.5 billion Bitcoin purchase plan. Typical Trump style?
This blockbuster news not only shocked the market but also thrust Trump into a new type of 'crypto political experiment', sparking a global discussion on the boundaries between power and crypto assets.
What does it mean for a media company to acquire such a massive amount of Bitcoin? Let's dissect this complex operation.
01
Where does the funding come from? Where is it directed?
First, let's look at the fundamental question: where does the funding come from?
According to official announcements, the $2.5 billion is divided into two parts:
$1.5 billion: raised through the issuance of common stock
$1 billion: raised through zero-coupon convertible preferred notes, priced at a 35% premium
In other words, this is a rather complex financing structure. The common stock portion is straightforward equity financing; convertible notes are designed to attract high-risk investors, with potential returns being very high if the stock price (and Bitcoin) rises.
If Bitcoin rises → Trump Media & Technology Group's balance sheet strengthens → stock price rises → note holders profit upon conversion.
If Bitcoin drops → company assets shrink → equity holders (even the company itself) may suffer losses.
Therefore, this is not just a Bitcoin investment—it attempts to construct a feedback loop fueled by Bitcoin, akin to early MicroStrategy... but this time, not a tech company, but a media content group.
02
Why hoard Bitcoin?
Devin Nunes, CEO of Trump Media & Technology Group, explained: 'We see Bitcoin as a tool to combat financial censorship.'
This is a significant statement. But the logic behind it is simple: they want financial self-defense.
Traditionally, companies must rely on banks, rating agencies, and mainstream financial institutions—often facing restrictions or discrimination. Using Bitcoin as part of reserve assets can detach the asset base from this system, increasing autonomy—but it also brings volatility.
The moves by Trump Media & Technology Group echo recent changes in corporate reserve strategies:
Companies like Semler Scientific and MetaPlanet have purchased Bitcoin as 'hard assets', and even the Czech National Bank plans to include Bitcoin in its reserves.
Thus, Trump Media & Technology Group is simply riding this emerging wave: viewing digital assets as the next generation of cash reserve strategies.
03
How does this feedback loop work?
Now the key question: Trump Media & Technology Group is neither a mining company nor a crypto trading platform. How will it 'monetize' its Bitcoin exposure?
This involves traffic and audience.
Trump Media & Technology Group has launched several crypto-native products, such as $TRURM, $MELANIA meme coins, which have already gained significant attention. Although most holders are at a loss, the market cap has risen, showing that monetizing IP through tokens is effective.
They also invested in crypto ETFs, decentralized finance platform TruthFi, and partnered with Crypto.com and Anchorage Digital for custody. They are building a closed-loop system around content + crypto + financial tools. The trust that owns 53% of the company shares places this feedback loop under a centralized control system.
In short: Trump Media & Technology Group bets that brand + capital + crypto products can create a self-sustaining flywheel.
External perspective: trust, risk, and centralization concerns
But none of this comes without risks.
Trust issues:
Trump Media & Technology Group first denied the deal, then confirmed it 24 hours later. Naturally, some investors expressed skepticism about its transparency. Following the announcement, the company's stock price dropped over 12%—clearly, not everyone is convinced.
Volatility exposure:
Bitcoin is currently fluctuating between $108,000 and $110,000. Leveraged players like James Wynn being liquidated means that Trump Media & Technology Group holding billions in Bitcoin could face significant balance sheet volatility.
Systemic centralization risk:
Some analysts are concerned—if more companies and countries hoard Bitcoin, a new 'centralized, unregulated' financial risk may emerge.
One prediction suggests that by 2045, institutions may hold 50% of the total Bitcoin supply. This concentration has raised serious systemic risk signals.
We are witnessing a media content company transform into a digital asset vault. Trump Media & Technology Group not only holds Bitcoin but is also issuing tokens, investing capital in decentralized finance, and building a complete architecture parallel to the traditional financial system. This 'vault' is:
Value storage
Valuation anchor
Confidence engine
It could yield astronomical returns—or if things worsen, trigger a severe adjustment.
In any case, this is one of the boldest experiments we've seen: a media company evolving into a crypto asset management company. Its success depends on two things:
Long-term performance of Bitcoin
Will the market accept this model?
04
Summary
If MicroStrategy is the 'tech company test' for corporate Bitcoin allocation, Trump Media & Technology Group is the 'IP + finance integration test'.
Whether successful or not, it raises a question worth noting: can content companies leverage crypto assets to upgrade, transform—perhaps even become decentralized finance giants?
We may soon find out the answer.
Original link: https://s.c1ns.cn/DEdQB
Original title: Trump’s $2.5 Billion Bitcoin Gambit: A Bold Experiment in 'Vault + Traffic'
Original author: SuperEx
Translation: Blockchain in Plain Language
