Trump Media Raises $2.5 Billion for Bitcoin Purchase

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

TMTG CEO Devin Nunes stated that the company views Bitcoin as a key instrument of financial freedom and plans to hold it as 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 earlier report from the Financial Times, which had suggested the deal was in the works.

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 recognition of Bitcoin as a significant financial instrument with geopolitical importance. Several other companies have also increased their Bitcoin holdings recently, including Michael Saylor’s Strategy, which acquired an additional 4,020 BTC on May 26, and Semler Scientific, which purchased 455 BTC valued at over $50 million. Investment firm MetaPlanet also 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. This growth in institutional adoption is driven by a flight to safety from traditional asset classes, as investors seek hard money assets like Bitcoin and gold. Myers noted that over the last two years, there has been an exodus from fiat assets, with a shift towards Bitcoin and gold.

TMTG's decision to invest in Bitcoin is a strategic move to bolster the company's financial resilience and position itself at the forefront of financial technology. By integrating Bitcoin into its treasury, the company aims to attract investors who are optimistic about the future of cryptocurrencies. This move could set a precedent for other companies considering similar investments, potentially reshaping the landscape of corporate treasury management.