Company behind Truth Social reportedly seeks to raise funds for Bitcoin purchases, following MicroStrategy’s corporate strategy
Trump Media & Technology Group, the company behind President Donald Trump’s Truth Social platform, is reportedly planning to raise $3 billion to invest in cryptocurrencies including Bitcoin, according to multiple financial news outlets, though the company has vigorously denied these claims.
The Reported Plan
The Financial Times reported that Trump Media aims to raise $2 billion in fresh equity and another $1 billion via a convertible bond, according to six people briefed on the matter. The capital raising could be announced ahead of a big meeting of crypto investors and advocates in Las Vegas this week, where vice-president JD Vance, Trump’s sons Donald Jr and Eric, and Trump’s crypto tsar David Sacks are expected to speak.
The terms, timing and size of TMTG’s capital raising could still change, with two people familiar with the plans telling the Financial Times that the offering had been increased in size in recent weeks due to strong demand.
The strategy would mirror that of companies like MicroStrategy (now called Strategy), a former software company whose market value has surged to more than $100bn after using debt and equity offerings to buy tens of billions of dollars in bitcoin.
Company Denials
TMTG said in a statement that “apparently the Financial Times has dumb writers listening to even dumber sources” but did not comment further. When Reuters sought comment, Trump Media Group responded by calling both Reuters and the Financial Times “fake news” outlets.
Market Context and Financial Details
TMTG shares closed Friday at $25.72, representing a market value of nearly $6bn. The secondary share offering will be carried out on at-the-market terms, meaning shares are expected to be sold near their price at the close of trading on Friday.
Bitcoin was up 1.5%, its biggest move up or down in three days and largest gain in four days following news of the reported plans. The price of bitcoin eclipsed a record-high price of $109,000 last week.
Trump Family’s Crypto Ventures
The reported investment strategy comes amid the Trump family’s expanding cryptocurrency interests. The Trump family’s involvement in crypto has included an NFT trading card, two memecoins, and stakes in crypto mining venture American Bitcoin and in stablecoin backer World Liberty Financial.
After winning re-election to the White House last year, Trump transferred his 53 per cent stake in TMTG, currently worth about $3bn, to a revocable trust overseen by his son Donald Jr, who has sole investment and voting power over the shareholdings held by the entity.
TMTG also plans to launch an exchange-traded fund focused on cryptocurrency. Last week, Trump hosted a private gala dinner for the top investors in his memecoin at his resort outside Washington.
Regulatory Scrutiny and Conflicts of Interest
This, however, has attracted scrutiny from government ethics and regulatory authorities. The plan is the latest example of the Trump family’s push into cryptocurrency, which has sparked concerns about conflicts of interest.
Democratic lawmakers have pushed back against bipartisan bills over the Trump family’s crypto dealings, with some staging protests against the memecoin dinner Trump hosted on May 22. Critics say that Trump’s crypto ventures pose a conflict of interest, especially as he could hold influence over an industry he stands to profit from.
Broader Industry Trends
The reported plans reflect a broader trend of institutional crypto adoption. A publicly traded blank cheque vehicle led by Brandon Lutnick, son of commerce secretary Howard Lutnick, struck a deal last month to create a bitcoin buying vehicle called Twenty One Capital in a $3.6bn deal involving Tether and SoftBank.
Cryptocurrency firm Ripple last month also struck a $1.25bn deal to buy digital currency-focused prime brokerage firm Hidden Road, in a bet that institutional investors will push further into crypto under the Trump administration.
Industry executives have told the FT that a wave of similar crypto-focused deals, especially among blank cheque companies, is expected in the coming weeks.
Also Read: Trump Crypto Dinner Guest Blasts “Worst Food Ever” and “Bullshit” Speech at Exclusive Memecoin Event
Corporate Strategy
The company behind Truth Social, a streaming and social media platform, has been exploring potential mergers and acquisitions as it aims to diversify into financial services. Last month, Trump Media reached a binding agreement to launch various retail investment products, including crypto and exchange-traded funds aligned with Trump’s America First policies.
ClearStreet and BTIG are among the brokers that could serve as underwriters on the deal, two people said.
The reported fundraising, if confirmed, would represent one of the largest corporate crypto investment initiatives to date, potentially positioning Trump Media alongside Strategy and other companies that have made Bitcoin a significant part of their treasury strategy. However, given the company’s strong denials, the actual implementation of such plans remains uncertain.
The White House declined to comment on the reports.
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