Trump Media Is Raising $2.5 Billion To Build A Bitcoin Reserve
Trump Media and Technology Group, the parent company of Truth Social, is raising $2.5 billion through a stock and bond sale—aiming to build a corporate bitcoin reserve, mirroring President Donald Trump's pro-crypto agenda.
President Donald Trump delivers the keynote speech at the Bitcoin 2024 conference in July in ... More Nashville. (Photo by)
Trump Media said it will sell $1.5 billion in shares and $1 billion in convertible bonds to institutional investors, according to a filing it made with the Securities and Exchange Commission on Tuesday.
It says the proceeds will fund a bitcoin reserve—making cryptocurrency a core part of its balance sheet.
Shares in the private sale were priced at $25.72; that's 8.7% higher than the $23.5786 they were trading at on the open market as of noon ET Tuesday.
The company plans to store its bitcoin with Crypto.com and Anchorage Digital, according to the filing.
Similar to Trump Media, the Trump administration has announced plans to create a national strategic bitcoin reserve in March. The administration's reserve plan is being presented as a national economic strategy, while Trump Media's bitcoin fund is a private business move—though the timing highlights the overlapping priorities. Trump Media's announcement also coincides with the start of the bitcoin 2025 conference in Las Vegas where Vice President JD Vance, Trump Media board member Donald Trump Jr. and Eric Trump are expected to speak.
Trump Media was formed in early 2021, shortly after Donald Trump left office, and went public in March 2024 via a merger with a SPAC—a shell company designed to take startups public. Beyond Truth Social, it also operates the streaming platform Truth+ and financial technology service Truth.fi. Its move to build a bitcoin reserve echoes the aggressive crypto strategy of MicroStrategy CEO Michael Saylor, who has fueled his company's growth by purchasing bitcoin from the proceeds of securities sales.
Trump controls 115 million shares—worth $2.7 billion as of noon Tuesday—representing 52% of Trump Media before any dilution from the private sale. The stake is held in a revocable trust, where Trump is the sole donor and beneficiary; Donald Trump Jr. serves as trustee.
Trump Media said about 50 institutional investors joined the deal But it's not immediately clear who they are.
'We view Bitcoin as an apex instrument of financial freedom, and now Trump Media will hold cryptocurrency as a crucial part of our assets,' Trump Media CEO Devin Nunes said in a statement announcing the sale. 'Our first acquisition of a crown jewel asset, this investment will help defend our Company against harassment and discrimination by financial institutions.'
'I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air,' Trump tweeted in 2019. 'Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity.'
Cantor Fitzgerald advised Trump Media on the transaction, according to a press release. Prior to joining Trump's cabinet, Commerce Secretary Howard Lutnick had been the financial institution's CEO. Lutnick divested his ownership of Cantor Fitzgerald earlier this month, putting the holdings in trusts for his children.
Forbes estimates Donald Trump's net worth at approximately $5.2 billion, with the bulk of his wealth tied to his stake in Trump Media. That company reported just $821,000 in revenue last quarter—despite sitting on nearly $759 million in cash. It also posted a $31.7 million net loss and holds $9.8 million in debt.
In November 2023, Trump Media sued 20 media outlets, including Forbes, for reporting that included calculations of its financial results while still a private company. The defendants have moved to dismiss the claims.
The 3 Easy New Ways Anyone Can Funnel Money Directly To Donald Trump's Businesses (Forbes)
Trump Media Executives Launch New SPAC Seeking $179 Million—And Target Crypto, Defense Sectors (Forbes)
Truth Social Hosted Party At Trump's Mar-A-Lago (Forbes)
Trump-Linked SPAC Spent $10.8 Million On Legal Fees Amid Regulatory Probes (Forbes)
When It Comes To Truth Social, Republicans In Congress Aren't Buying What Trump's Selling (Forbes)
Trump Media Paid Donald Trump Jr. Nearly A Quarter Of Its Annual Revenue. He Attended Just Two Board Meetings (Forbes)
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