#TrumpBTCTreasury It has reached an agreement to raise $2.5 billion that will be used to purchase Bitcoin, creating a reserve of the cryptocurrency.
The company's move into cryptocurrencies comes after Trump Media entered other investment areas, including the creation of exchange-traded funds, or ETFs, and separately managed accounts with investment strategies that the company says are "rooted in American values and priorities."
In its announcement on Tuesday, Trump Media announced its agreement with about 50 institutional investors to purchase shares of the company worth $1.5 billion, in addition to another $1 billion in convertible debt. These funds totaling $2.5 billion will be used to create a "Bitcoin treasury," which the company said will be added to its balance sheet.
This comes in addition to the cash and cash equivalents and short-term investments that Trump Media already holds, which it said are valued at $759 million.
President Trump, the largest investor in Trump Media, has increasingly focused on cryptocurrencies, both through his own businesses and his administration. He has directed his officials to create a "national strategic reserve for cryptocurrencies" that includes Bitcoin, Ethereum, and lesser-known cryptocurrencies. Trump Media - known for its 'Truth Social' app - aims to push the company to become more than just a tech company, according to CEO Devin Nunes.
Nunes said in a statement on Tuesday: "This is a significant step forward in the company's plans to evolve into a holding company by acquiring additional profitable assets that align with America First principles."
Shares of Trump Media fell by $2.14, or 8.3%, to $23.58 in early afternoon trading. Since the deal is based on issuing new shares for the company worth $1.5 billion, plus $1 billion in convertible debt, this offer could dilute the value of existing shareholders' stocks, including Mr. Trump's shares.