Trump Media to raise $2.5B to build Bitcoin treasury, mirroring Strategy's playbook

Key Takeaways

Trump Media will increase $2.5 billion to create one of many largest Bitcoin treasuries amongst public firms.
The treasury deal contains $1.5 billion in widespread inventory and $1 billion in convertible notes.

Trump Media and Expertise Group Corp (TMTG), which operates Reality Social and different Trump-branded media and expertise platforms, introduced Tuesday its plans to lift $2.5 billion in a bid to construct a Bitcoin treasury.

The corporate will undertake a playbook akin to that of Michael Saylor’s Technique, providing $1.5 billion in inventory and $1 billion in convertible senior secured notes to a choose group of roughly 50 institutional buyers. The transaction is anticipated to shut on Thursday, Might 29.

In a Tuesday assertion, Trump Media CEO Devin Nunes stated the corporate views Bitcoin because the “apex instrument of economic freedom” and can now maintain crypto as a key a part of its company belongings. Bitcoin briefly touched $110,700 on the corporate’s Bitcoin treasury plan, per TradingView.

“Our first acquisition of a crown jewel asset, this funding will assist defend our Firm towards harassment and discrimination by monetary establishments, which plague many People and US corporations, and can create synergies for subscription funds, a utility token, and different deliberate transactions throughout Reality Social and Reality+,” Nunes famous. “It’s a giant step ahead within the Firm’s plans to evolve right into a holding firm by buying further profit-generating, crown jewel belongings in keeping with America First ideas.”

The convertible notes will carry a zero % rate of interest and have a conversion value set at a 35% premium. As of the top of Q1 2025, the corporate reported holding $759 million in money, money equivalents, and short-term investments.

Yorkville Securities, LLC and Clear Road LLC are serving as co-lead placement brokers, with BTIG, LLC and Cohen & Firm Capital Markets appearing as co-placement brokers. Crypto.com and Anchorage Digital will present custody providers for the Bitcoin treasury.

Crypto.com and Yorkville America Digital not too long ago entered right into a take care of Trump Media in a bid to deliver America-first crypto ETFs to the market, together with ones tied to Bitcoin and Cronos.

The announcement follows a Monday report from the Monetary Occasions, which claimed that Trump Media was looking for to lift $3 billion by means of share gross sales.

Based on the report, the web proceeds can be used to amass Bitcoin and different crypto belongings. The report additionally famous that the announcement was anticipated to precede the Bitcoin Convention, which begins at the moment.

The occasion, the biggest of its form, options a lineup of high-profile figures, together with Vice President JD Vance, Donald Trump Jr., Eric Trump, and the White Home’s crypto czar, David Sacks. Michael Saylor can be scheduled to attend, together with different distinguished business leaders.

In the identical report, the Monetary Occasions stated it contacted the corporate for remark and acquired a response alleging that the publication has “dumb writers listening to even dumber sources.”