- Trump Media to raise $2.5 billion through stock sales and convertible notes
- Funds will be used to invest in bitcoin, with custody provided by Anchorage Digital and Crypto.com
Trump Media plans to diversify revenue by holding bitcoin
Trump Media & Technology Group, the company behind the Truth Social platform, announced plans to raise approximately $2.5 billion to invest in bitcoin. The funding will be sourced through $1.5 billion in stock sales and $1.0 billion in convertible notes issued at a 35% premium.
The move is part of the company’s broader effort to diversify revenue by expanding into financial services, with bitcoin held alongside $759 million in existing cash and short-term investments. Custody of the digital assets will be managed by Anchorage Digital and Crypto.com. CEO Devin Nunes emphasized that bitcoin represents financial freedom and aligns with the company’s “America First” principles.
Trump Media is also developing crypto-related retail investment products such as exchange-traded funds (ETFs) . However, the move has provoked regulatory concern, with Senator Elizabeth Warren questioning oversight plans for Trump Media’s upcoming ETFs. Following the announcement, the company’s stock declined by 6%.
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Why it’s important
This significant investment marks a notable shift in Trump Media’s strategy, aligning with a broader trend of companies adding cryptocurrencies to their balance sheets. The move also reflects the Trump administration’s growing embrace of digital assets, including the establishment of a U.S. Strategic Bitcoin Reserve earlier this year .
While proponents argue that such investments can offer financial freedom and align with national interests, critics express concerns over the volatility of cryptocurrencies and the potential risks to investors. The involvement of high-profile political figures in the crypto space also raises questions about regulatory oversight and the potential for conflicts of interest.
As Trump Media ventures further into the cryptocurrency market, the company’s actions will likely influence both the financial industry and the broader conversation around digital assets in the United States.
