Trump Media’s Shares Decline Despite $2.5 Billion Bitcoin Reserve Update

Trump Media (TMTG) has reported it has successfully secured $2.5 billion from institutional investors, representing one of the largest uses of Bitcoin treasury assets by a publicly traded entity. Nonetheless, this news was met with mixed reactions in the market, as shares of Trump Media finished the day down by 10%.

Trump Media Achieves $2.5 Billion for Bitcoin Treasury

This significant fundraising effort consists of $1.5 billion in common stock alongside $1 billion in convertible notes, with plans for the funds to be allocated towards acquiring bitcoin, which will play a central role in the company’s asset reserve.

Trump Media has confirmed that it has established subscription agreements with about 50 institutional investors to support this major initiative.

To oversee these digital assets, the company plans to utilize Anchorage Digital and Crypto.com, platforms that have recently partnered with Trump Media to introduce its inaugural exchange-traded funds (ETFs).

This announcement occurs during a time when Bitcoin is pulling back from its previous peaks, coinciding with the Bitcoin 2025 conference in Las Vegas, which has showcased Donald Trump’s emerging role as the country’s first “crypto president.”

Despite the enthusiasm surrounding the IPO, Trump Media’s stock remains unstable, dropping nearly 30% this year. The firm currently has a market capitalization around $5.3 billion, juxtaposed with reported revenues of merely $3.6 million and a considerable loss of $400 million in 2024.

Bitcoin as an ‘Apex Instrument’

Devin Nunes, who is the CEO of Trump Media and a former congressman, labeled Bitcoin as an “apex instrument of financial freedom.” He characterized this initiative as a vital countermeasure against what he referred to as “systemic discrimination” faced by conservative businesses from financial institutions.

Alongside this treasury strategy, Trump Media is collaborating with Crypto.com to roll out a range of ETFs and digital asset products, pending regulatory clearance. These funds will feature a mix of cryptocurrencies, including Bitcoin and Crypto.com’s native token, Cronos (CRO).

The products will be offered under the Trump Media brand and made accessible to international investors via major brokerage services and the Crypto.com app, which has over 140 million users.

The $2.5 billion Bitcoin treasury initiative aligns with a growing trend where politically aligned companies are shifting their corporate treasuries towards Bitcoin-heavy assets.

Additionally, emerging figures like Jack Mallers are rising to challenge established competitors, supported by substantial investments from Tether and SoftBank. David Bailey, another significant name in Trump-related Bitcoin activities, recently led a $710 million merger with KindlyMD, realigning the company’s focus towards a crypto-first approach rather than a holistic opioid recovery model.

Bailey, who is a trusted associate of the Trump administration, described this strategy as “Strategy, squared,” highlighting a goal to enhance the BTC holdings per share.