Trump Media Plans to Raise $12 Billion Through Securities Sale – More Bitcoin Acquisitions on the Horizon?

Trump Media & Technology Group (TMTG) is aiming to secure billions through a securities offering. While details surrounding the intent behind this fundraising remain unclear, recent company activities suggest that a portion of the funds could potentially be allocated toward acquiring more bitcoin (BTC).

The company’s filing indicates that TMTG seeks to raise as much as $12 billion by offering a combination of common stock, preferred stock, debt securities, warrants, rights, or other units to potential investors.

TMTG’s $12 Billion Objective

Specifics regarding the terms of the offering will be included in forthcoming prospectus supplements. Currently, TMTG has disclosed plans to issue 84.6 million shares of common stock, each priced at $0.0001.

Out of this offering, TMTG plans to privately place 55.8 million shares with institutional investors at a price of $25.72 per share, amounting to around $1.44 billion. Additionally, 28.8 million shares will be made available upon conversion of its 0.00% convertible senior notes maturing in 2028, expected to raise about $1 billion.

The company emphasized that they possess the ability to offer shares at diverse prices through various outlets, including underwriters, dealers, and agents.

“Further details on how we and the Selling Securityholders might sell the securities can be found in the section named ‘Plan of Distribution.’ We will receive proceeds from the issuance and sale of our common stock, preferred stock, debt securities, warrants, rights, or units. However, we will not see any profits from the sale of Shares by the Selling Securityholders through this prospectus,” the company outlined in the prospectus.

The $2.5 Billion Bitcoin Acquisition

Recently, TMTG reportedly announced plans to raise $3 billion specifically for bitcoin purchases. Shortly thereafter, it was revealed that the company had successfully raised around $2.5 billion to actualize this BTC acquisition strategy, with funding achieved through $1.5 billion in stock sales and $1 billion from convertible notes at a 35% premium.

TMTG has recorded the acquired bitcoins on its balance sheet, with custodial responsibilities handled by digital asset platforms Crypto.com and Anchorage Digital.

The firm’s recent bitcoin purchases, paired with a rising trend of corporate bitcoin adoption, are prompting speculation that the anticipated $12 billion raised could be directed toward additional bitcoin acquisitions. The future will reveal whether these predictions hold true.