Donald Trump’s media company has announced plans to raise $2.5 billion from institutional investors to establish a Bitcoin reserve.
Following the announcement, shares in Trump Media and Technology Group experienced a decline of approximately 10%. This fundraising initiative involves around 50 investors, comprising $1.5 billion in common stock and $1 billion in convertible notes. The proceeds will be directed towards creating a Bitcoin treasury, with Crypto.com and Anchorage Digital tasked with providing custody services for the assets.
Devin Nunes, CEO of Trump Media, stated, “We view Bitcoin as a pivotal instrument of financial freedom, and the incorporation of cryptocurrency will be a vital aspect of our asset portfolio. This initial acquisition of a premier asset will enhance the protection of our company against the challenges posed by financial institutions, which affect many Americans and US companies. Additionally, it will facilitate synergies for subscription services, utility tokens, and other upcoming transactions across Truth Social and Truth+.”
Trump’s endorsement of cryptocurrency has been influential, contributing to Bitcoin’s recent surge towards the $100,000 milestone. The former President has proposed the establishment of a “Strategic Bitcoin Reserve” and a distinct “US Digital Asset Stockpile.” Recently, 220 investors from his $Trump memecoin initiative were invited to a dinner event at a luxury golf club in Northern Virginia.