Trump Media Raises $2.5 Billion for Bitcoin Treasury Despite Stock Decline
Trump Media Raises $2.5 Billion for Bitcoin Treasury
- Trump Media has secured $2.5 billion, including $1.5 billion in common stock and $1 billion in convertible notes.
- Funds will be allocated for purchasing Bitcoin, establishing it as a core treasury asset.
- The company has subscription agreements with around 50 institutional investors for this initiative.
- Bitcoin will be stored with Anchorage Digital and Crypto.com.
- Despite the funding announcement, Trump Media's shares dropped 10% on the same day.
- Trump Media's stock has declined nearly 30% this year, with a market cap of $5.3 billion and revenues of $3.6 million against a loss of $400 million in 2024.
Strategic Moves and Partnerships
- CEO Devin Nunes labeled Bitcoin as an “apex instrument of financial freedom,” addressing perceived discrimination from financial institutions.
- The company plans to launch ETFs and digital asset products in partnership with Crypto.com, pending regulatory approval.
- These offerings will include baskets of cryptocurrencies, branded under the Trump Media name.
- The broader trend includes businesses converting corporate treasuries to Bitcoin-heavy portfolios.
- Figures like Jack Mallers and David Bailey are emerging in Trump-linked BTC initiatives, with Bailey leading a $710 million merger focused on a crypto-first strategy.
