On May 27, 2025, local U.S. time, Trump Media & Technology Group (TMTG) announced an eye-catching plan: to raise $2.5 billion through private financing to create a Bitcoin treasury.
This move has not only caused a stir in the financial sector but also sparked new discussions in the political arena.
Background of the Bitcoin treasury
TMTG's Bitcoin treasury plan aims to raise funds by issuing $1.5 billion of common stock and $1 billion of zero-coupon convertible senior secured bonds.
The funds will be used to incorporate Bitcoin into the company's reserves to achieve financial stability and long-term value storage.
At the time of the announcement, Bitcoin's price was approaching its historical high, and the largest digital asset event of the year, 'Bitcoin 2025,' was taking place in Las Vegas, undoubtedly adding significant attention to TMTG's plans.
Market reaction and strategic intent
As soon as the news broke, the market reacted strongly. TMTG's stock price soared before U.S. stock market opening but then experienced significant fluctuations.
Meanwhile, cryptocurrency-related stocks are generally rising, showing the market's continued interest in cryptocurrencies. TMTG CEO Devin Nunes emphasized in a statement that Bitcoin is the 'top tool for financial freedom,' which will help the company resist 'harassment and discrimination' from financial institutions and pave the way for future business of Truth Social and Truth+ platforms.
Trump's cryptocurrency strategy
Trump's frequent moves in the cryptocurrency field are no longer a new thing.
Truth Social, as a bastion of 'free speech,' aligns perfectly with Bitcoin's decentralized brand image.
Investing in Bitcoin not only caters to the cryptocurrency community among Trump supporters but may also attract new users to Truth Social, enhancing platform stickiness.
Financial pressures and future outlook
Since its launch, Truth Social's burn rate has been astonishing, but its profitability prospects remain unclear.
TMTG may follow MicroStrategy's 'Bitcoin treasury' model, significantly buying Bitcoin through equity and debt financing, hoping for long-term appreciation to boost the company's valuation.
However, Bitcoin's extreme volatility also makes TMTG's plans fraught with risks, especially since its financial foundation is far less stable than that of MicroStrategy.
The role of Crypto
In TMTG's cryptocurrency strategy, crypto plays a key role.
As one of the custodians of the Bitcoin treasury, crypto.com’s cooperation with TMTG is not limited to technical support but also involves broader financial arrangements.
This partnership not only demonstrates the technical alignment of both parties but also reflects the political support from Trump's camp.
Extending the 'America First' concept into the digital asset space
Trump's Bitcoin treasury plan is not only a corporate financial strategy but also an experimental ground for the integration of his political brand with the crypto economy.
This plan may aim to extend the 'America First' concept into the digital asset space, becoming an extension of Trump's political machine into the world of cryptocurrencies.
In an era where cryptocurrency intersects with politics, this move will undoubtedly continue to attract global attention.
