Bitcoin Surges 109K as Trump Media Plans 2.5 Billion Investment

At the Bitcoin 2025 conference, David Sacks, the White House’s AI and crypto czar, engaged in a discussion with Gemini co-founders Cameron and Tyler Winklevoss about the pro-Bitcoin stance of Donald Trump. Sacks emphasized that the success of Bitcoin should be measured by innovation levels rather than price levels, noting that Bitcoin recently broke through the $111K level and set a new record, holding steady at $109K. He highlighted the rising institutional interest and ETF inflows, with traders betting on new highs in the coming months.

Sacks asserted that Bitcoin and cryptocurrencies represent the financial system of the future and that the U.S. should lead in this innovation rather than allowing it to be driven offshore. He also stressed the importance of boosting energy production in the U.S. to support both AI and Bitcoin mining, which require significant amounts of electricity. Sacks revealed that the government could purchase more Bitcoin if the Commerce or Treasury Department can find a way to fund it without increasing the debt. This revelation comes as Trump's media company plans to raise $2.5 billion to invest in Bitcoin and other cryptocurrencies, following a strategy popularized by Michael Saylor's MicroStrategy in 2020. The funds will be raised through the sale of $1.5 billion worth of common stock and $1 billion in convertible notes.

Thousands of Bitcoin enthusiasts gathered in Las Vegas for BTC Inc.’s annual conference, featuring prominent speakers and a significant increase in participation from institutional investors compared to the previous year. More countries are adopting Bitcoin, with nine nations now mining it with government support. Fred Thiel, CEO of Marathon Digital Holdings, advocated for the U.S. to join in, comparing it to having a strategic oil or gold reserve. The acquisition of Bitcoin by Trump Media is seen as a bold move in the corporate Bitcoin treasury arms race. CEO Devin Nunes described Bitcoin as "an apex instrument of financial freedom," emphasizing the company's intention to protect itself from financial persecution. This strategy mirrors that of MicroStrategy, which has become a significant holder of Bitcoin. Other companies, such as Metaplanet in Japan, have also followed suit, with Metaplanet holding over $850 million worth of Bitcoin. For these companies, stockpiling Bitcoin has been beneficial, with their share prices surging significantly.

However, there are growing concerns about the structural soundness of this model. If Bitcoin's price were to collapse, it could lead to mass selloffs, liquidations, and drawdowns that would negatively impact the market. Despite these risks, the trend of corporate Bitcoin hoarding continues, with Trump Media's move being the latest and most prominent example. The company's plan to raise $2.5 billion for its Bitcoin treasury strategy is a clear indication of the growing acceptance and adoption of cryptocurrencies in the corporate world.