Trump Media Plans to Raise $3 billion for Bitcoin and Crypto Investment

Key Insights:

• Trump Media plans to raise $3 billion to buy cryptocurrency assets.
• Strategy boosts Bitcoin holdings with recent multi-billion buys.
• Corporate crypto deals surge amid increased institutional interest.

Trump Media & Technology Group (TMTG), the company behind Truth Social and controlled by the Trump family, is reportedly planning to raise $3 billion to acquire digital assets such as Bitcoin. This move aligns with recent efforts by the U.S. President’s administration to position the country as a global leader in crypto.

The capital raise would include $2 billion in new equity and $1 billion through a convertible bond, according to six people familiar with the matter. The company has not officially confirmed the fundraising but is expected to announce the plan ahead of a major crypto event in Las Vegas.

This upcoming conference will feature high-profile appearances from Vice President JD Vance, Trump’s sons Donald Jr. and Eric Trump, and David Sacks, who currently oversees the administration’s crypto initiatives.

The potential capital raise has reportedly increased in size due to heightened investor interest, two sources told the Financial Times. However, TMTG has dismissed the reporting, stating that the publication relied on untrustworthy sources.

Strategic Structure of the Offering and Market Parallels

The capital-raising structure resembles a model previously used by Strategy, formerly MicroStrategy. That company shifted from software development to become one of the largest corporate holders of Bitcoin. Strategy financed its Bitcoin purchases using a mix of debt and equity offerings. Its market capitalization now exceeds $100 billion.

TMTG’s equity portion of the raise is expected to occur under at-the-market conditions, meaning shares will be sold near the last trading price. TMTG shares closed at $25.72 on Friday, giving the company a market valuation of nearly $6 billion. ClearStreet and BTIG may act as underwriters, two people with knowledge of the deal confirmed.

In addition to acquiring Bitcoin, TMTG has signaled further involvement in the digital asset space. The company is preparing to launch a cryptocurrency-focused exchange-traded fund.

Previously, the Trump family introduced a non-fungible token trading card series and backed two meme-based cryptocurrencies. TMTG also holds stakes in American Bitcoin, a crypto mining operation, and World Liberty Financial, a stablecoin development firm.

Family Control and Industry Ties

Following the President’s re-election last year, he transferred his 53 percent stake in TMTG to a revocable trust managed by Donald Trump Jr. This trust, currently valued at roughly $3 billion, grants Trump Jr. exclusive authority over investment and voting decisions tied to the entity’s holdings.

Other connections between the administration and cryptocurrency ventures continue to emerge. A publicly traded special-purpose acquisition company (SPAC) led by Brandon Lutnick, son of U.S. Commerce Secretary Howard Lutnick, entered a $3.6 billion agreement to establish Twenty One Capital. This vehicle focuses on large-scale Bitcoin acquisitions and involves both Tether and SoftBank.

Ripple also entered the institutional crypto space recently. The firm acquired Hidden Road, a prime brokerage focused on digital assets, in a $1.25 billion deal. Industry executives cited by the Financial Times expect additional SPAC-driven crypto deals in the coming weeks as investor appetite grows under the current administration.

Broader Corporate Momentum in Bitcoin Acquisitions

The Trump family’s pivot to crypto aligns with a broader trend of corporate entities increasing Bitcoin holdings. On May 26, Strategy disclosed a fresh purchase of 4,020 BTC at an average price of $106,237 per coin. This $427.1 million transaction expanded its holdings to 580,250 BTC, acquired at an average of $69,979 per unit. The company’s total investment now stands at $40.61 billion.

Just a week earlier, Strategy completed another substantial purchase, acquiring 7,390 BTC for $765 million on May 19. According to the company, it funded these acquisitions through proceeds from its Common ATM, STRK ATM, and STRF ATM offerings.

Other firms are following similar treasury strategies. On May 16, Brazilian fintech company Méliuz became the country’s first to adopt Bitcoin as a reserve asset. It invested over $28 million into BTC to mitigate inflation and currency risks.

Around the same time, U.S.-listed DayDayCook confirmed a 100 BTC purchase and revealed plans to increase its holdings to 500 BTC within six months. The company ultimately aims to accumulate 5,000 BTC over the next three years.

Disclaimer

In this article, the views and opinions stated by the author or any people named are for informational purposes only. And they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.