Trump Media and Technology Group (DJT), the operator of Truth Social, has closed its previously announced private placement offering to establish its corporate Bitcoin treasury, which produced $2.32 billion in net proceeds.
Trump Media’s $2.32 Billion Bitcoin Buying Power
According to a May 30 press release, the Trump family-led company sold roughly 56 million shares at $25.72 apiece for gross proceeds of $1.44 billion and issued $1 billion in 0% convertible senior secured notes maturing in 2028. Around 50 institutional investors participated in the sale. The offering was led by Yorkville Securities and Clear Street, with Cantor Fitzgerald serving as financial advisor.
Trump Media said it would use approximately $2.32 billion in net proceeds to buy Bitcoin and for other general corporate purposes. The placement will put the world’s largest cryptocurrency on Trump Media’s balance sheet alongside existing cash, cash equivalents, and short-term investments.
“Trump Media is focused on acquiring great assets, and this deal will give us the financial freedom to implement the rest of our strategies,” Trump Media CEO and Chairman Devin Nunes said in the release. “It means the Company will have more than $3 billion in liquid assets, and our shareholders will have exposure to Bitcoin. The deal positions Trump Media for the kind of rapid expansion we’ve always envisioned, and we look forward to advancing even further throughout the America First economy.”
Crypto.com and Anchorage Digital will custody all the Bitcoin purchased by Trump Media.
The move adds the Nasdaq-listed company to an increasing list of publicly-traded firms that have raised capital to purchase cryptocurrencies like Bitcoin, a play pioneered by Michael Saylor’s Strategy. The software intelligence-turned-Bitcoin development firm has become the world’s largest Bitcoin corporate holder, amassing more than $60 billion in BTC by financing frequent buys through a mix of equity and debt issuances.
Trump Media described its offering as “one of the largest Bitcoin treasury deals for any company” on Wall Street, adding that the firm will become “one of the top Bitcoin holders among publicly-traded U.S. firms with one of the most comprehensive Bitcoin treasury strategies.”
Trump and his family have gone all-in on crypto in recent months since the president’s return to office in January, launching meme coins and the decentralized finance protocol, World Liberty Financial — which also debuted its own stablecoin. Moreover, Trump’s sons, Eric and Donald Trump Jr., have launched their own Bitcoin mining company.
