Trump Media & Technology Group (TMTG), the parent company of Truth Social, has announced plans to raise approximately Ksh.323 billion (equivalent to $2.5 billion) in a bold move to establish a substantial bitcoin treasury. The announcement marks a significant shift in the company’s financial strategy and signals U.S. President Donald Trump’s growing embrace of cryptocurrency.
The fundraising initiative involves private placement deals with about 50 institutional investors. Under these agreements, TMTG will issue and sell $1.5 billion in common stock and an additional $1.0 billion in convertible senior secured notes. The offering is expected to close by May 29, according to a company statement released on Tuesday.
Trump Media CEO Devin Nunes stated that Bitcoin would become a central component of the company’s asset portfolio. “We view Bitcoin as an apex instrument of financial freedom, and now Trump Media will hold cryptocurrency as a crucial part of our assets,” he said. Nunes also emphasized that this strategy aims to protect the company from what he described as “harassment and discrimination by financial institutions.”
Despite the ambitious plans, the market reacted with skepticism. TMTG’s stock price fell by 11 percent during morning trading following the announcement.
The company also revealed that Crypto.com and Anchorage Digital would manage custody services for its bitcoin holdings. The move is part of a broader strategy to align Trump Media with what it terms the “America First economy” — a phrase closely associated with Trump’s political messaging.
Donald Trump, who has previously been skeptical of cryptocurrencies, now appears to be championing their adoption. He has declared his intention to make the United States the “crypto capital of the world.” His renewed interest in digital assets extends beyond TMTG, with his eldest sons reportedly leading several related ventures.
This pivot toward cryptocurrency could appeal to a tech-savvy and libertarian-leaning demographic within Trump’s political base as he eyes another potential presidential run. However, analysts caution that volatility in the crypto market and regulatory uncertainties may pose significant challenges to the success of this financial experiment.
