Trump Media Raises $2.44 Billion for Bitcoin Treasury

Trump Media and Technology Group (DJT), the operator of Truth Social, announced on Friday that it has successfully closed a $2.44 billion fundraising deal. This capital raise is specifically aimed at establishing a bitcoin treasury, marking a significant move in the company's financial strategy.

The fundraising effort involved the sale of nearly 56 million shares at $25.72 per share and the issuance of $1 billion in 0% convertible notes maturing in 2028. This offering was subscribed to by approximately 50 institutional investors, with Yorkville Securities and Clear Street leading the placement and Cantor Fitzgerald serving as the financial advisor.

The net proceeds from this capital raise, amounting to $2.32 billion, will be directed towards the purchase of bitcoin for the company's treasury. Crypto.com and Anchorage Digital have been appointed to provide custody services for these bitcoin holdings.

This strategic move positions DJT alongside other publicly-traded firms that have raised capital to add crypto assets like bitcoin to their balance sheets. This approach was pioneered by Michael Saylor's Strategy, which has become the world's largest corporate holder of bitcoin, accumulating over $60 billion in BTC through a combination of equity and debt issuances.

Earlier this year, Trump Media shared its plans to launch a financial services platform with a focus on crypto and customized exchange-traded funds. The company also expressed its intention to partner with Crypto.com to develop and launch these ETF products, further solidifying its commitment to the crypto space.