The Trump Media & Technology Group (TMTG) company, linked to the president of the United States, Donald Trump, announced today, Tuesday, May 27, a strategic action to incorporate Bitcoin (BTC) into its treasury.
According to an official statement, the total operation will raise approximately USD 2.5 billion: USD 1.5 billion through the issuance of common shares and USD 1,000 million through senior convertible notes insured with 0%rate. The closure of this private offer is scheduled for May 29.
The funds will be used to establish a corporate treasury in Bitcoin. The custody of the BTC will be in charge of Crypto.com and Anchorage Digital.
The company, which is quoted at the Nasdaq and the Texas Stock Exchange under the DJT ticket, operates the social network Truth Social, the Truth+ streaming platform and the financial product Truth.FI. Its president and CEO, Devin Nunes, said that this step represents the acquisition of an «active jewel» destined to shield Trump Media against «the harassment and discrimination of financial institutions», a phenomenon that, according to him, affects many US companies and citizens.
The agreement was possible thanks to the participation of around 50 institutional investors. Among the financial and legal advisors involved are Yorkville Securities, Clear Street, Big, Cohen & Company Capital Markets and Cantor Fitzgerald & Co. The Nelson Mullins and Reed Smith Sumks provided legal advice to the company and the placing agents, respectively.
The investment will place Trump Media in the group of companies quoted in the stock market with large Bitcoin reserves, currently led by Strategy (formerly Microstrategy), which – as cryptootics has reported it – accumulates 580,000 BTC.
With this play, Trump Media is positioned as a new relevant institutional actor in the bitcoiner ecosystem.