Trump Media announced its plan to raise $2.5 billion in an effort to bankroll one of the largest bitcoin treasury allocations by a public company in a statement obtained by the Associated Press on Tuesday (May 27).
The reported deal includes $1.5 billion in common stock and $1 billion in convertible notes, with Trump Media & Technology Group, the operator of President Donald Trump's Truth Social website and other ventures, claiming it already has subscription agreements with about 50 institutional investors.
“This investment will help defend our Company against harassment and discrimination by financial institutions, which plague many Americans and U.S. firms,” said Trump Media CEO and Chairman Devin Nunes via the Associated Press.
Shares of Trump Media & Technology Group Corp. dropped by 9% following the announcement, while bitcoin's value rose above $110,000 on Tuesday. Other companies have adopted similar cryptocurrency strategies, with MicroStrategy Inc., a cloud and mobile software developer, building its treasury reserve of billions in bitcoin through stock sales and debt financing.
Trump, who had previously downplayed cryptocurrencies as "not money" with value "based on thin air," shifted his stance during his re-election campaign in 2024, which included appearing as the keynote speaker at the bitcoin2024 conference in Nashville last July and vowing to make the United States the "crypto capital of the planet," via the Associated Press.