SEC Approves Trump Media's $2.3 Billion Bitcoin Reserve
Date: 2025-06-16 Author: Oliver Abernathy Categories: BUSINESS
The US Securities and Exchange Commission (SEC) has approved Trump Media and Technology Group's application to create a treasury reserve in bitcoins. The company, the largest shareholding of which is owned by US President Donald Trump, has been given the opportunity to use the funds raised to purchase BTC.
We are talking about capital in the amount of about $2.3 billion, which was collected from about 50 institutional investors. After the SEC's approval, these funds became available for conversion into bitcoins. What share of the capital will be used to purchase BTC has not yet been specified. The documentation notes that Trump Media plans to purchase bitcoins and related assets in the volumes and within the timeframes that it deems most appropriate from the point of view of the market situation.
Additionally, the SEC filing provides for the ability for Trump Media to issue new financial instruments. The company has been given the right to raise up to $12 billion at any time by selling shares, debt securities, or providing guarantees. This instrument is known as a universal shelf and provides flexibility in managing financing.
As part of the approved plan, approximately 84.7 million shares previously owned by the company's early investors can now be put up for resale. This volume represents approximately 50% of the total public offering of shares and approximately 30% of the total number of shares outstanding. Thus, Trump Media strengthens its position in both traditional capital markets and the cryptocurrency space, demonstrating confidence in the future of Bitcoin and related assets.
