Trump Media and Technology Group to Raise $2.5 Billion by Investing in Bitcoin

(Reuters) - Trump Media and Technology Group will raise about $2.5 billion to invest in bitcoin

Trump Media & Technology Group Inc (NASDAQ:TRUM) will invest about $2.5 billion in bitcoin as part of a broader revenue diversification plan, the U.S. President Donald Trump's social media company said on Tuesday.

The company will raise $1.5 billion in stock at its last closing price and $1 billion in convertible notes priced at a 35% premium, it added.

The bitcoin will be held on Trump Media's balance sheet alongside existing cash and short-term investments, which totaled $759 million as of the end of the first quarter. Crypto platforms Anchorage Digital (NASDAQ:ADPL) and Crypto.com will provide custody for the bitcoin holdings.

"We view bitcoin as an apex instrument of financial freedom," said Trump Media CEO Devin Nunes, describing the move as a "huge step forward" in the company's plan to acquire "crown jewel assets consistent with America First principles."

Shares of the company, which is behind streaming and social media platform Truth Social, fell 8%.

The move is part of a recent trend of public companies adding bitcoin and other cryptocurrencies to their balance sheets to capitalize on rising token prices.

Strategy (NASDAQ:MGCR) - formerly known as MicroStrategy - has been a major investor in bitcoin and saw its shares soar more than six-fold last year, taking its market value to almost $94 billion. The company held $23.91 billion in crypto assets as of the end of 2024.

Several other companies, including GameStop (NYSE:GME) and some biotech firms, have tried to replicate Strategy's success.

Last month, Cantor Fitzgerald announced that it would be teaming up with Tether and SoftBank Group (TYO:9984) to launch Twenty One Capital, a bitcoin-buying entity that was formed from a merger with blank-check vehicle Cantor Equity Partners. The combined vehicle is valued at $3.6 billion.

Trump Media has been exploring potential mergers and acquisitions as it aims to diversify into financial services.

Last month, it reached a binding agreement with investment firm Alpha to launch various retail investment products, including crypto and exchange-traded funds that will be aligned with Trump's policies.

The Trump family, who are no strangers to investing in real estate and hospitality ventures, have been making several inroads into the crypto sector.

Those other crypto ventures include Trump NFTs, which sold out quickly earlier this year, a meme coin called MAGAcoin, and a stake in a newly formed bitcoin producer called American Bitcoin. Trump Media is also planning to launch World Liberty Financial, a decentralized crypto platform that will offer a stablecoin pegged to the U.S. dollar.

However, the Trump family's crypto push has also attracted scrutiny from lawmakers.

Democratic Senator Elizabeth Warren has asked the U.S. securities regulator about its plans to supervise ETFs to be launched by Trump Media and what steps it will take to protect investors.