Trump Media says investors will fund a company ‘bitcoin reserve’ through share purchases Then Former President Donald Trump speaks at the Bitcoin 2024 Conference, July 27, 2024, in Nashville, Tenn.
President Donald Trump’s media company said Tuesday that institutional investors will buy $2.5 billion in the company’s stock with the proceeds going to build up a bitcoin reserve.
About 50 institutional investors will put up $1.5 billion in the private placement for common shares in the company and another $1 billion for convertible senior notes, according to Trump Media and Technology Group, the operator of Truth Social and other companies.
Trump Media said it intends to use the proceeds for the creation of a “bitcoin treasury.”
“This investment will help defend our Company against harassment and discrimination by financial institutions, which plague many Americans and U.S. firms,” said Trump Media CEO and Chairman Devin Nunes in prepared remarks.
Shares of Trump Media & Technology Group Corp., based in Sarasota, Fla., tumbled 9%
Other companies have adopted similar strategies through cryptocurrency. Cloud and mobile software developer MicroStrategy Inc. has built up a treasury reserve containing billions worth of bitcoin through stock sales and debt financing.
Trump, who referred to cryptocurrencies in his first term as “not money,” citing volatility and a value “based on thin air,” has shifted his views on the technology.
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