Trump Media and Technology Group has entered into a significant agreement with institutional investors, a deal valued at $2.5 billion aimed at establishing a bitcoin treasury. This announcement was made on Tuesday.
According to the statement from the company, the transaction is scheduled to finalize around Thursday, May 29. It involves a $1.5 billion stock issuance along with $1 billion in convertible notes for its investors.
The financing will be facilitated through a private placement offering, allowing Trump Media to fund the establishment of the bitcoin treasury. The company also serves as the parent organization of the social media platform Truth Social.
Devin Nunes, CEO of Trump Media, articulated the company’s perspective, stating, “We view bitcoin as an apex instrument of financial freedom, and now Trump Media will hold cryptocurrency as a crucial part of our assets.”
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Nunes further elaborated that the treasury of cryptocurrency will provide a safeguard against potential discrimination or harassment from financial institutions that could disrupt their operations. “Our first acquisition of a crown jewel asset, this investment will help defend our Company against such challenges and will create synergies for subscription payments, a utility token, and other planned transactions across Truth Social and Truth+,” he noted.
He emphasized that this action signifies a significant advancement in the company’s broader strategy to transition into a holding firm, focusing on acquiring valuable profit-generating assets that align with the America First ideology.
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Custody services for Trump Media’s bitcoin treasury will be jointly managed by Crypto.com and Anchorage Digital.
As of Tuesday morning, Trump Media’s stock saw a decline of approximately 10% during the trading session.
Earlier this year, in January, the company unveiled plans for Truth.Fi, which is anticipated to offer a range of financial services and investment options, rolling out various products within the year.
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In March, Trump Media formed a partnership with Crypto.com to provide exchange-traded funds (ETFs), with a particular focus on digital assets and a variety of cryptocurrencies, including bitcoin.
