Trump Media Plunges 10% After Announcing $2.5B Bitcoin Treasury

The share price of Trump Media plunged 10 percent on Tuesday morning after it announced it is raising $2.5 billion to create a Bitcoin treasury.

Trump Media's share price slid 10 percent on Tuesday morning after it announced an initiative to raise $2.5 billion from a group of institutional investors to buy Bitcoin.

The company plans to sell about $1.5 billion in stock and $1 billion in convertible notes to around 50 institutional investors who will use the funds to purchase the cryptocurrency. The offering is expected to close on or about Thursday.

Trump Media says it intends to use the Bitcoin treasury to diversify its assets and expand its reach into the American economy.

“We view Bitcoin as an apex instrument of financial freedom, and now Trump Media will hold cryptocurrency as a crucial part of its assets,” said Trump Media CEO Devin Nunes. “It’s a big step forward in the Company’s plans to evolve into a holding company by acquiring additional profit-generating, crown jewel assets consistent with America First principles.”

The company says the move will also help defend it against “harassment and discrimination by financial institutions, which plague many Americans and U.S. firms.”

The Bitcoin treasury will be held by Crypto.com and Anchorage Digital.

President Trump is the controlling shareholder of Trump Media, which is the parent company of Truth Social. His shares are held in a revocable trust.

Tuesday’s announcement is the latest push into cryptocurrency by Mr. Trump. Trump Media launched Truth.Fi earlier this year to operate as a finance company and plans to allocate around $250 million into cryptocurrency and other investments, according to the Wall Street Journal.

His family is also heavily involved in the crypto space through World Liberty Financial and American Bitcoin. Mr. Trump also held a dinner last week for the top buyers of his memecoin.

Mr. Trump signed an executive order in March to establish a Strategic Bitcoin Reserve and stockpile digital assets to be owned by the Department of the Treasury. It would be capitalized with Bitcoin obtained as part of criminal or civil asset forfeiture proceedings.

A growing number of companies are adding cryptocurrency to their holdings. Among them are Tesla, software company MicroStrategy, and healthcare-technology company Semler Scientific.

Bitcoin prices rose 1 percent on Tuesday morning after the announcement, trading near an all-time high.