Trump Media to Invest $2.5 Billion in Bitcoin Through Institutional Fundraise
Trump Media & Technology Group, the parent company of Truth Social, is set to raise $2.5 billion from institutional investors to invest in Bitcoin, signalling a significant pivot from its origins as a social media platform to becoming a financial and crypto-focused enterprise.
The company announced on Tuesday that it plans to raise $1.5 billion by issuing approximately 58 million new shares to around 50 institutional investors. Additionally, Trump Media will raise another $1 billion through a convertible bond offering. The capital raised is intended to be used primarily for investing in Bitcoin, establishing one of the largest corporate cryptocurrency reserves in the world.
The firm’s shift towards Bitcoin mirrors the strategy popularised by Michael Saylor’s MicroStrategy, which adopted Bitcoin as a treasury asset. “We view Bitcoin as an apex instrument of financial freedom, and now Trump Media will hold cryptocurrency as a crucial part of our assets,” said CEO Devin Nunes, a former U.S. Congressman from California.
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The shares will be sold at $25.72 apiece, with the transaction expected to close as early as Thursday. The fundraising could dilute existing shareholders, including former U.S. President Donald Trump, who holds a controlling stake of over 50 percent in Trump Media through a trust managed by his son Donald Trump Jr.
Trump Media went public last year through a merger with a special purpose acquisition company (SPAC). Despite a market valuation exceeding $5 billion, the firm has struggled financially. In the most recent quarter, it reported a $32 million loss against just $820,000 in advertising revenue, as Truth Social has yet to gain significant traction.
In response to these financial challenges, the company has been diversifying. Last month, Trump Media partnered with Crypto.com and Yorkville Advisors to launch exchange-traded funds (ETFs) focused on Bitcoin and businesses aligned with Trump’s “America First” policy agenda. It has also retained Cantor Fitzgerald, a financial services firm with growing interests in crypto, as its advisor.
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The company’s deepening ties with the crypto world coincide with Donald Trump’s increasing support for digital assets. Initially sceptical, the former president became a vocal proponent of the industry during his campaign and has promised a more favourable regulatory environment for cryptocurrencies.
Following Trump’s return to office, several investigations and lawsuits involving crypto firms were reportedly dropped. Crypto.com, for instance, confirmed that an investigation into its operations was recently closed.
Beyond the public markets, the Trump family is also making strategic crypto investments through various vehicles. World Liberty Financial, a crypto venture controlled by a Trump family business entity, has reportedly received $2 billion from the UAE government. Meanwhile, American Bitcoin, a company co-founded by Eric Trump, is planning to go public.
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President Trump’s personal financial portfolio has also seen a major boost from the crypto rally, with his holdings in Trump Media and various crypto ventures adding billions to his net worth—at least on paper.
The company’s latest move consolidates its new direction, transforming from a loss-making social media venture into a bold player in the financial and digital asset sectors.
Disclaimer: This post is for general informational purposes only. It does not constitute financial advice. Please consult a qualified professional before making financial decisions.
