Trump Media & Technology Group (TMTG), the parent company of Truth Social, has announced plans to raise approximately $2.5 billion to invest in Bitcoin, positioning itself among the largest corporate holders of the cryptocurrency. The company intends to raise the funds through a private placement comprising $1.5 billion in common stock and $1 billion in convertible senior secured notes. The offering is expected to close on or about May 29, 2025.
Strategic Rationale
CEO Devin Nunes emphasized Bitcoin’s role as a symbol of financial freedom and a strategic asset for the company. He stated, “We view Bitcoin as an apex instrument of financial freedom, and now Trump Media will hold cryptocurrency as a crucial part of our assets.”
The move aligns with President Donald Trump’s broader agenda to position the United States as a global leader in digital assets. Earlier this year, Trump signed an executive order establishing a Strategic Bitcoin Reserve, aiming to incorporate seized cryptocurrency assets into the nation’s reserves without additional taxpayer cost.
Financial Structure and Custody
The $2.5 billion offering comprises approximately $1.5 billion in TMTG common stock at the last market price and $1.0 billion in convertible notes at a conversion price equal to a 35 percent premium. This capital will be used to establish a Bitcoin treasury, marking one of the largest Bitcoin treasury deals by a public company.
Crypto.com and Anchorage Digital will provide custody services for TMTG’s Bitcoin holdings, ensuring secure storage of the digital assets.
Market Reaction and Future Outlook
Following the announcement, TMTG’s stock (DJT) experienced a 6% decline, reflecting investor concerns over the volatility of cryptocurrency markets and the company’s deepening involvement in the sector.
Despite the market’s cautious response, TMTG’s strategic move into Bitcoin signifies a broader shift in corporate treasury management and highlights the growing acceptance of cryptocurrencies in mainstream finance. As the company continues to diversify its revenue streams and expand its presence in the digital asset space, its Bitcoin investment may serve as a foundation for future growth and innovation.
