Trump Media's Big Bitcoin Bet

Trump Media and Technology Group is making a bold move in the world of cryptocurrency. They are raising a massive $2. 5 billion through a mix of stock and bond sales. The goal? To build a significant bitcoin reserve. This isn't just a small investment; it's a major strategic shift for the company. The plan involves selling $1. 5 billion in shares and $1 billion in convertible bonds to big-time investors. The shares were priced at $25. 72, which is a bit higher than their market price at the time. The company will store its bitcoin with Crypto. com and Anchorage Digital. This move is part of a broader trend in the tech world, where companies are increasingly seeing cryptocurrency as a valuable asset. Trump Media was created in early 2021, right after Donald Trump left office. It went public in March 2024 through a merger with a SPAC, a type of shell company used to take startups public. Beyond Truth Social, the company also runs Truth+, a streaming platform, and Truth. fi, a financial technology service. This bitcoin reserve plan is similar to what MicroStrategy, a tech company led by Michael Saylor, has done. MicroStrategy has been buying up bitcoin to boost its growth. The timing of this announcement is interesting. It comes just as the Trump administration is pushing for a national strategic bitcoin reserve. While the administration's plan is about national economic strategy, Trump Media's move is purely business. This overlap in timing shows how closely aligned the company's goals are with Trump's political agenda. Trump himself has a significant stake in the company. He controls 115 million shares, which are worth about $2. 7 billion. This represents 52% of Trump Media before any new shares are sold. The shares are held in a trust where Trump is the sole donor and beneficiary, with Donald Trump Jr. serving as the trustee. The company has not revealed who the institutional investors are. However, it is clear that there is significant interest in this bitcoin reserve plan. Trump Media CEO Devin Nunes has described bitcoin as a key tool for financial freedom. He sees this investment as a way to protect the company from potential harassment and discrimination by financial institutions. This move is surprising given Trump's past statements about bitcoin. In 2019, he tweeted that he was not a fan of bitcoin and other cryptocurrencies, calling them highly volatile and based on thin air. He also warned that unregulated crypto assets could facilitate illegal activities. This shift in stance highlights the evolving views on cryptocurrency, even among its critics.