Trump Media Creates Bitcoin Reserve, Raises $2.5 Billion in Investments
Date: 2025-05-28 Author: Gabriel Deangelo Categories: BUSINESS
Trump Media and Technology Group (TMTG), which controls the social network Truth Social and is associated with the family of US President Donald Trump, announced its intention to raise $2.5 billion and begin forming a bitcoin reserve. As of June 2024, Trump owns 58.7% of the company’s shares.
The company has entered into agreements with approximately 50 institutional investors for a private placement of securities. The plan includes a $1.5 billion equity issue and a $1 billion zero-coupon convertible bond offering. Part of these funds will be used to purchase bitcoins.
While details regarding the amount of investment in bitcoin and the timing of the acquisition are not disclosed, company representatives emphasize that the strategy of diversifying assets using cryptocurrency will help strengthen the company’s resilience to market fluctuations.
The closing of the deal on the placement of securities is scheduled before May 29. TMTG will use the infrastructure of the Crypto.com and Anchorage Digital platforms to store digital assets.
Trump Media CEO and Chairman Devin Nunes noted that Bitcoin is considered a key tool for financial independence: "We intend to use cryptocurrency as a strategic asset. This is the first such investment by our company, which is aimed at protecting against the pressure from traditional financial institutions that many Americans face."
The news immediately caused a reaction in the crypto market - 15 minutes after publication, the Bitcoin rate rose from $ 109.6 thousand to $ 110.2 thousand, and by 17:00 Moscow time it was fixed at about $ 110 thousand.
The day before, the Financial Times reported on the company's plans to create a Bitcoin reserve of up to $ 3 billion. TMTG representatives reacted harshly to the publication, criticizing journalists, but later the information turned out to be close to the truth.
Earlier in January, the company launched the fintech division Truth.Fi, allocating up to $250 million to invest in various assets, including cryptocurrencies and digital securities. Asset management was transferred to Yorkville Advisors, and Charles Schwab was appointed as the custodian.
In March, it became known about TMTG's partnership with the Crypto.com platform. As part of the cooperation, it is planned to launch exchange-traded products under the Truth.Fi brand. The project may be implemented this year, subject to regulatory approval.
Also in March, Trump Media management created a SPAC company Renatus in the Cayman Islands to buy blockchain companies. It is expected to attract at least $179 million through an IPO and private investments.
