Trump Media reportedly aims to raise $3 billion for cryptocurrency acquisitions through an equity offering and bond support.
Trump Media and Technology Group (TMTG) is seeking to raise $3 billion to invest in Bitcoin (BTC) and other cryptocurrencies, according to a recent report.
The report detailed that TMTG plans to issue approximately $2 billion in new equity and an additional $1 billion in convertible bonds, based on information from six insiders familiar with the plans.
As demand has increased, the size of the offering reportedly expanded in recent weeks, with TMTG potentially announcing this initiative at a cryptocurrency investment event in Las Vegas featuring notable speakers like Vice President JD Vance and Donald Trump Jr.
Sources noted that if TMTG successfully reaches its fundraising goal, it would likely use about half of the funds raised to purchase Bitcoin, while the rest will be allocated based on market opportunities.
This investment could elevate TMTG to the position of the seventh-largest Bitcoin holder among both public and private companies, according to Bitcoin Treasuries data.
TMTG’s $3B Fundraising Efforts Reflect Strategic Approach
The equity portion of the fundraising is structured as an at-the-market sale, with shares priced near the closing value of $25.72 from May 23, placing the media company’s valuation near $6 billion.
The convertible bond component allows investors to convert debt into shares, a strategy that has gained popularity through previous large-scale Bitcoin purchases.
Discussions indicate that financial firms ClearStreet and BTIG are considering underwriting this transaction.
TMTG has dismissed the sourcing of the report as “dumb” but did not provide any further details. Representatives for Donald Trump Jr. and the White House have not commented.
Expanding into the Crypto Space
Trump and his family have pursued various crypto-related ventures, which include the launch of the TRUMP memecoin, investments in American Bitcoin mining, and the development of the decentralized app World Liberty Financial.
Additionally, TMTG is preparing to offer a series of crypto exchange-traded funds (ETFs) branded “Truth.fi” in collaboration with Crypto.com.
On April 29, TMTG introduced the Truth.fi division in a shareholder letter, also mentioning plans for a digital wallet and a cryptocurrency named Truth+.
Moreover, the former President recently hosted an exclusive dinner for top holders of his memecoin at his resort located near Washington.
Post Comment