The Trump Media and Technology Group (DJT.O), the social media corporation of U.S. President Donald Trump, announced on Tuesday that it intends to diversify its revenue stream by raising approximately $2.5 billion to invest in Bitcoin.
Capital Raise Through Stock and Convertible Notes
The company plans to raise the funds by selling $1.5 billion in stock at its most recent closing price, along with an additional $1 billion in convertible notes priced at a 35% premium, according to an official statement.
Bitcoin to Be Held on Balance Sheet
Trump Media stated that Bitcoin will be held on its balance sheet alongside existing cash and short-term investments, which totalled $759 million as of the end of the first quarter. The crypto assets will be placed under the custody of Anchorage Digital and Crypto.com.
Devin Nunes, CEO of Trump Media, characterized Bitcoin as the “apex instrument of financial freedom” and praised the decision as a “significant advancement” in the company’s strategy to acquire “crown jewel assets consistent with America First principles.”
Stock Drops Following Announcement
Despite the ambitious move, the company’s stock saw an 8% decline following the announcement.
Public Companies Embrace Digital Assets
As the Trump administration embraces digital assets, public companies have increasingly been adding Bitcoin and other cryptocurrencies to their balance sheets to capitalize on the rising value of tokens.
Strategy (MSTR.O), formerly known as MicroStrategy, has long been an aggressive investor in Bitcoin. In 2024, its shares rose more than sixfold, bringing its market value to nearly $94 billion. As of the end of that year, the company held $23.91 billion in crypto assets.
Other Companies Follow Suit
GameStop (GME.N) and various biotech firms have also attempted to replicate Strategy’s success in the crypto space.
Cantor Fitzgerald announced last month a collaboration with Tether and SoftBank Group to form Twenty One Capital, a Bitcoin-buying entity created through a merger with the blank-check vehicle Cantor Equity Partners. The combined company is estimated to be worth $3.6 billion.
As part of its diversification strategy, Trump Media is exploring potential mergers and acquisitions in the financial services sector. Last month, the company reached a definitive agreement to introduce a range of retail investment products, including exchange-traded funds (ETFs) and crypto offerings aligned with Trump’s policies.
Trump Family Expands Crypto Ventures
The Trump family has launched several crypto initiatives, rapidly accumulating hundreds of millions of dollars. These include Trump NFTs, a meme coin, a stake in the newly formed Bitcoin producer American Bitcoin, and World Liberty Financial—a decentralized crypto platform offering a stablecoin pegged to the U.S. dollar.
Regulatory Scrutiny Increases
However, not all are supportive of Trump Media’s crypto push. Democratic Senator Elizabeth Warren expressed concern last month, inquiring about the U.S. Securities and Exchange Commission’s plans to regulate the ETFs Trump Media is preparing to launch.
