Trump Media Announces a $2.5 Billion Private Placement to Fund a New Bitcoin Treasury
Trump Media & Technology Group Corp. (NASDAQ:DJT) has announced today a $2.5 billion private placement to build one of the largest corporate Bitcoin treasuries to date. The deal, backed by approximately 50 institutional investors, includes $1.5 billion in common equity and $1.0 billion in zero-coupon convertible notes.
The DJT intends to use the proceeds to increase its liquid funds to over $3.0 billion and fund the creation of its Bitcoin treasury, which will position the company as both a media operator and digital-asset holding entity.
CEO Devin Nunes described the Bitcoin investments as both an attempt to hedge against "harassment" from financial institutions and lay the foundation for future monetization strategies across the company's main products - Truth Social, Truth+, and the upcoming Truth.FI platform. The move also introduces Bitcoin exposure to the company, which is a double-edged sword - on one hand, it is now tied to the Bitcoin appreciation potential, but on the other hand, it will be exposed to the pronounced volatility of the cryptocurrency market.
The announcement by Trump Media & Technology Group Corp. (NASDAQ:DJT) comes days after Bitcoin broke a new all-time high above $111,000. For crypto investors, this event can be treated as an indirect signal into Bitcoin's price potential in the current bull market, especially as President Trump has some aces up his sleeve that could push Bitcoin's price even higher.
Trump already signed an act to create a strategic reserve of Bitcoin for the US Government, and has the power to increase the limit of the reserve at any time. The US Government reportedly owns 200,000 Bitcoins, while previously blocked proposals were for a reserve as high as 1,000,000 Bitcoins. DJT company operates the social platform Truth Social, aiming to promote free speech and build an alternative digital ecosystem.
While we acknowledge the potential of DJT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DJT and that has 100x upside potential, check out our report about this cheapest AI stock.
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