Trump Media Secures $2.3 Billion Bitcoin Treasury Deal Approval

The U.S. Securities and Exchange Commission (SEC) has approved the registration statement filed by Trump Media and Technology Group for its $2.3 billion Bitcoin (BTC) Treasury deal. This approval, which was declared effective on June 13, allows Trump Media to proceed with the sale of securities as outlined in its Form S-3 filing on June 6. Following this approval, Trump Media submitted a final prospectus to the SEC on Friday.

Trump Media, the entity behind the social media platform Truth Social, raised $2.3 billion from approximately 50 investors. This was achieved through the resale of around 56 million shares of equity and 29 million shares underlying convertible notes. The deal, which closed on May 30, is touted as one of the largest Bitcoin treasury deals for a public company. This move is part of Trump Media’s broader strategy to expand aggressively and transform into a key player in the growing Patriot Economy.

The establishment of a Bitcoin Treasury will place BTC on Trump Media’s balance sheet, alongside cash and cash equivalents. This will provide shareholders with exposure to BTC. Crypto.com and Anchorage Digital will handle the custody of Trump Media’s Bitcoin Treasury holdings. The company’s CEO and President, Devin Nunes, highlighted that this Bitcoin Treasury will help defend the company against potential harassment and discrimination by financial institutions. Additionally, it will create synergies for subscription payments, a utility token, and other planned transactions across Truth Social and Truth+, a streaming platform.

Trump Media’s Bitcoin Treasury is not the only initiative the company is pursuing in the Bitcoin market. On June 5, the company filed with the SEC to launch a Bitcoin exchange-traded fund (ETF) named Truth Social Bitcoin ETF. Crypto.com will serve as the exclusive custodian for all BTC held by the ETF, which will track BTC’s price performance.

Don Wilson, the founder and CEO of DRW Investments, one of the world’s largest trading firms, invested $100 million in Trump Media’s Bitcoin Treasury deal. According to an SEC filing, DRW Investments purchased over 3.8 million shares in Trump Media, making it one of the largest investors in this Bitcoin Treasury fundraising round. This investment has raised concerns about potential conflicts of interest with the current U.S. administration, as Cumberland, a crypto liquidity provider controlled by Wilson, has benefited under the second Trump administration. In March, the SEC dropped a lawsuit initiated under the leadership of former SEC Chair Gary Gensler against Cumberland, which had alleged that it was operating as an unregistered securities dealer by selling crypto assets.