Trump Media Raises $2.5 Billion for Bitcoin Purchase

Trump Media and Technology Group (TMTG), the company that owns US President Donald Trump’s Truth Social platform and is partially owned by the president, has confirmed a $2.5 billion capital raise to purchase Bitcoin (BTC). This announcement comes after the company initially denied reports of the deal. The capital raise is structured as a $1.5 billion stock sale and $1 billion in convertible senior secured bonds, with a 0% coupon. The sale is expected to close on May 29.

TMTG CEO Devin Nunes stated that the company views Bitcoin as an apex instrument of financial freedom and that holding cryptocurrency will be a crucial part of their assets. This investment is aimed at defending the company against potential harassment and discrimination by financial institutions. The announcement follows a derisive response from TMTG spokespeople to an initial report from the Financial Times, which was published a day before the official confirmation.

The funding deal is part of a broader trend where corporations and countries are adopting Bitcoin treasury strategies. This move by TMTG aligns with the growing acceptance of Bitcoin as a financial instrument of geopolitical importance. Several other companies have also increased their Bitcoin holdings in recent months, including Michael Saylor’s Strategy, which acquired an additional 4,020 BTC on May 26. Technology company Semler Scientific purchased 455 BTC, valued at over $50 million, for its treasury, and investment firm MetaPlanet acquired an additional 1,004 BTC on May 19.

Market analyst Jesse Myers recently predicted that at the current rate of institutional accumulation, large entities will own 50% of the total Bitcoin supply by 2045. Myers attributed this growth in institutional adoption to a flight to safety from traditional asset classes, noting that an exodus from fiat assets has already begun, with hard money assets like BTC and gold becoming more attractive.

This strategic move by TMTG to invest in Bitcoin is a significant development in the corporate adoption of cryptocurrencies. By diversifying its funding sources and maintaining financial flexibility, TMTG aims to position itself at the forefront of this emerging financial landscape. This decision could potentially reshape the way companies approach treasury management, with more organizations considering Bitcoin as a strategic asset to enhance financial stability and resilience.