Trump Media & Technology Group (DJT) is preparing to raise $300M to invest in cryptocurrencies

Trump Media has also laid out plans to create financial products connected to cryptocurrencies. These investments include ETFs that represent the company's political priorities.

Trump Media & Technology Group (DJT) is planning to raise $3 billion to invest in cryptocurrencies, according to people familiar with the process.

What Happened: The company, which operates the Truth Social platform, will seek to secure $2 billion in equity and $1 billion in convertible bonds for the funding, which could be announced at the upcoming Bitcoin 2025 event in Las Vegas.

Attending Wednesday's dinner are Vice President JD Vance, Donald Trump Jr., Eric Trump and crypto adviser David Sachs.

Fundraising efforts come after the company has begun investing in digital assets to expand into financial services.

DJT stock rose 5% following reports of the funding effort, closing at $25.72, which brings the company's market value to 5.67 billion.

Trump News: New Strategy Targets Retail Finance and ETFs

Trump Media has also laid out plans to create financial products tied to cryptocurrencies, which will include ETFs that represent the company's political priorities.

The company will partner with Crypto.com in developing and introducing several of these products, as mentioned last month.

This marks a shift in focus from social media and the internet to a broader media strategy, aiming to generate revenue from retail financial products and partnerships.

Several public companies have opted to capitalize on digital assets. A number of firms have added large holdings of Bitcoin to their portfolios for the future.

Investor Interest Heightens, Amid Regulatory and Ethical Scrutiny

Sources familiar with the matter say the offering has grown in size due to heightened interest from investors. The equity is expected to be sold on an at-the-market basis, meaning shares will be priced close to where they currently trade.

The scale of the plan has drawn attention from regulatory and ethics agencies, raising questions about the company's role in the crypto sector.

This comes as Donald Trump, the company's founder, continues to speak positively about digital assets, having recently stated his belief that Bitcoin is "a very interesting thing."

In response to media coverage, Trump Media made strong statements against the Financial Times and Reuters, calling them unreliable. The White House did not respond to requests for comment.

Following a Well-Known Playbook

Trump Media's plan to raise funds and invest in Bitcoin follows a model used by Strategy, formerly known as MicroStrategy.

The company has purchased around $62 billion of Bitcoin using sales from its stock and bonds, bringing its total market value to over $100 billion.

With Bitcoin recently trading above $109,000, the timing of Trump Media's plan has caught the attention of investors.

Public companies have been making a push into crypto this year, hoping to benefit from digital assets as a new asset class.

Trump Media's move into this space comes after a year of involvement by the Trump family in crypto-related projects, including NFT collections, meme tokens, and investments in blockchain firms.

DJT Stock Gains as Trump News Points to Crypto Expansion

Following reports, Trump Media's stock moved higher, gaining 5% in a single trading session.

The rally follows a period of mixed performance for DJT stock, and the news of a planned crypto investment appeared to trigger new buying.

The company has not yet disclosed a detailed schedule for the capital raise, and final terms are still under discussion. However, attention ahead of the Las Vegas event suggests the announcement may be made soon.