Trump Media and Technology Group Is Planning to Raise $3 Billion by Selling Equity and Convertible Bonds to Buy Bitcoin and Other Cryptocurrencies

Trump Media and Technology Group, the company behind US President Donald Trump's Truth Social platform, is planning to raise $3 billion

Trump Media and Technology Group, the parent company of former U.S. President Donald Trump’s social media platform Truth Social, is planning to raise $3 billion in a mix of equity and convertible bonds to buy Bitcoin and other cryptocurrencies, the Financial Times reported on Monday, May 23.

The move would position Trump Media to follow in the footsteps of crypto treasury companies like Strategy, which recently revealed a 4,020 Bitcoin (BTC) holding, part of a $1 billion treasury that also includes deep learning and artificial intelligence technologies.

Trump Media will be issuing $2 billion in equity and $1 billion in convertible bonds, a type of asset that can be converted into equity at a later date. The size of the raise may change, the FT cited sources familiar with the matter as saying.

The equity is expected to be sold at market price as of the close on May 23. On that day, the share price closed at $25.72, marking a 4.6% increase on the day. Trump Media’s market capitalization was $5.7 billion as of May 23.

The company is following a similar approach to that pioneered by companies such as Strategy, Metaplanet, Semler Scientific and others, allocating part of their funds to Bitcoin. Betting on crypto provides a hedge against inflation and keeps them from becoming “zombie companies,” some of the companies have said.

Cointelegraph reached out to Trump Media for comment but had not received a response at the time of publication.

The move may also result in more scrutiny toward the Trump family’s growing crypto businesses. Democratic lawmakers have pushed back against bipartisan bills over the Trump family’s crypto dealings, with some staging protests against the memecoin dinner Trump hosted on May 22.

Lawmakers have also voiced concern over potential conflicts of interest as Trump could be seen to be using his influence to benefit his own crypto ventures. Some critics have also raised questions over insider trading, especially in relation to the Trump (TRUMP) token.

Trump’s crypto ties include non-fungible token collections, the Official Trump (TRUMP) and Melania (MELANIA) memecoins, decentralized finance platform World Liberty Financial and a dollar-pegged stablecoin.