Trump Media Stock Drops 8% After Announcing $2.5B Bitcoin Treasury Plan

Trump Media & Technology Group (TMTG) has announced a landmark $2.5 billion capital raise aimed at creating one of the largest Bitcoin treasuries among publicly traded companies.

Trump Media & Technology Group (TMTG) announced a landmark $2.5 billion capital raise that will be used to create one of the largest Bitcoin treasuries among publicly traded companies.

The company said Tuesday that it is planning to sell $1.5 billion in common stock and $1 billion in convertible notes to about 50 institutional investors. The funds will be used to purchase BTC, which will be held as a central treasury asset.

This move marks a dramatic expansion of Trump Media’s strategic ambitions. Originally launched as a free-speech-focused social media company, TMTG is now pivoting into financial services and cryptocurrency.

A Deepening Partnership

The Bitcoin will be held by Anchorage Digital and Crypto.com, two prominent names in providing custody services to institutions.

According to the statement, Crypto.com is also helping Trump Media to launch its first exchange-traded funds.

The partnership between the two companies is deepening as they navigate the complexities of the U.S. regulatory landscape for launching ETFs linked to Bitcoin and other digital assets.

This capital raise, if completed, would make Trump Media one of the largest corporate Bitcoin holders globally, placing it in the league of companies like MicroStrategy and Marathon Digital.

The announcement comes amid a broader trend of institutions increasing their allocations to Bitcoin as a hedge against inflation and a long-term store of value.

Despite the news, shares of Trump Media dropped about 10% following the announcement, suggesting that some investors may be hesitant regarding the scale and direction of the new initiative.