Key Takeaways
- Trump Media will raise $2.5 billion to create one of the largest Bitcoin treasuries among public companies.
- The treasury deal includes $1.5 billion in common stock and $1 billion in convertible notes.
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Trump Media and Technology Group Corp (TMTG), which operates Truth Social and other Trump-branded media and technology platforms, announced Tuesday its plans to raise $2.5 billion in a bid to build a Bitcoin treasury.
The company will adopt a playbook akin to that of Michael Saylor’s Strategy, offering $1.5 billion in stock and $1 billion in convertible senior secured notes to a select group of roughly 50 institutional investors. The transaction is expected to close on May 29, 2025.
“We view Bitcoin as an apex instrument of financial freedom, and now Trump Media will hold cryptocurrency as a crucial part of our assets,” said CEO and Chairman Devin Nunes. “Our first acquisition of a crown jewel asset, this investment will help defend our Company against harassment and discrimination by financial institutions, which plague many Americans and US firms, and will create synergies for subscription payments, a utility token, and other planned transactions across Truth Social and Truth+.”
The convertible notes will have a 0.00% interest rate with a conversion price set at a 35% premium. The company reported $759.0 million in cash, cash equivalents, and short-term investments at the end of Q1 2025.
Yorkville Securities, LLC and Clear Street LLC are serving as co-lead placement agents, with BTIG, LLC and Cohen & Company Capital Markets acting as co-placement agents. Crypto.com and Anchorage Digital will provide custody services for the Bitcoin treasury.
This is a developing story.
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