Trump Media and Technology Group (TMTG) Plans to Raise $3B to Buy Cryptocurrencies

This fundraising move signals a deeper push into digital assets by a firm controlled by the Trump family, who are closely tied to the current U.S. presidential administration.

Trump Media and Technology Group (TMTG), the company behind Truth Social, is planning to raise $3 billion to buy cryptocurrencies, sources told Reuters.

The move by the Trump family firm signals a deeper push into digital assets. It comes amid reports of Trump’s close ties to the U.S. presidential administration and his family members’ involvement in crypto ventures.

TMTG plans to raise $2 billion through new equity and another $1 billion via a convertible bond, according to six individuals familiar with the matter. The announcement could be made as early as this week at a major crypto event in Las Vegas, three sources said.

Donald Trump Jr, Eric Trump, Vice-President JD Vance, and Trump’s crypto advisor David Sachs are expected to attend the conference.

The company’s strategy closely resembles that of MicroStrategy, which has become a major corporate Bitcoin holder through equity and debt offerings to invest in digital assets.

TMTG’s stock closed last Friday at $25.72, giving it a market capitalization close to $6 billion. The capital raise is expected to occur on “at-the-market” terms, meaning shares will be sold at or near their current trading price.

The move follows recent activity from Trump-linked businesses that support digital assets, including memecoins, NFT trading cards, crypto mining, and now a new exchange-traded fund (ETF) focused on cryptocurrency.

Last week, Donald Trump hosted a private event at his Washington-area resort for investors in his TRUMP-themed memecoin.

TMTG is also working with Crypto.com to launch its crypto ETF, with the exchange assisting in managing digital assets and related securities within the fund. Two firms, ClearStreet and BTIG, are expected to help underwrite the upcoming capital raise, two sources said.

A similar deal was recently announced by a blank cheque company led by Brandon Lutnick. That $3.6 billion venture aims to build a Bitcoin buying entity in collaboration with Tether and SoftBank.

Fundraising efforts have sparked fresh concerns about ethics and legality. Some critics argue that close financial involvement in cryptocurrency could present conflicts of interest, given Trump’s position as U.S. president.

One recent event saw Trump reportedly wearing the presidential seal during a private crypto dinner. The White House said it was a personal event, but wearing the seal at a non-official event could breach federal law, which carries a penalty of up to six months in jail.

Congresswoman Maxine Waters has also introduced a new bill titled the “Stop TRUMP in Crypto Act.” The proposed legislation aims to bar U.S. officials, including the president, from trading or promoting cryptocurrencies while in office.

Movement Labs, which is linked to World Liberty Financial, another Trump-connected firm, is also under scrutiny amid allegations of unfair deals with early investors.