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Globe and Mail
a day ago
- Business
- Globe and Mail
Trump Outvoted? DJT Stock Stake Slides Below 50% in Bitcoin Gamble
President Donald Trump may soon lose majority control of his own media company — and it's all because of a $2.5 billion Bitcoin bet. Trump Media & Technology Group (DJT) revealed plans Tuesday to sell a flood of new stock and convertible notes to fund a massive crypto play. The fallout? Trump's voting power could drop below 50%, stripping him of the final word over Truth Social. Confident Investing Starts Here: Bitcoin-Backed $2.5B Raise Threatens Trump's Grip on DJT The company will issue $1.5 billion in new equity and $1 billion in convertible notes, according to SEC filings. The proceeds are earmarked for direct Bitcoin purchases, making Trump Media one of the first public companies to embrace crypto at this scale. But the math is simple: more shares equals more dilution. Before the move, Trump (through a trust in Don Jr.'s name) controlled 52% of shares. After the raise, that figure could slide to 41%. That's below majority — and with no dual-class voting rights, Trump can now be outvoted by shareholders. Trump's Name, Not Trump's Call The stock trades under DJT. The brand is unmistakable. But the voting structure isn't. Trump placed his holdings in a revocable trust, which he can reclaim, but that doesn't shield him from shareholder math. The shares sold Tuesday went to institutional investors, not the Trump family. At the moment, Trump's name sits on the door. But in a corporate vote, the final say might not. University of Florida professor Jay Ritter says Trump fans might not vote against him, but that's not a certainty. 'It's unlikely 100% of the other shareholders would vote in opposition,' he said. 'But it's also not guaranteed.' Without a special share class, one angry fund could change the outcome. Convertible Notes Add Fuel to Fire The $1 billion in notes can be turned into shares at $34.72. If that happens, Trump's control slips even further. Unlike a simple raise, convertible debt brings ongoing dilution risk — every conversion chips away at the family's stake. Nunes Gets Paid, while Stock Tanks CEO Devin Nunes pulled $47.6 million in comp last year, while Trump Media booked just $3.6 million in revenue. That's a 13-to-1 pay ratio. Meanwhile, DJT stock fell 10% to $23.05 on Tuesday. The Nasdaq closed up 2.5%. Unless Trump, Don Jr., or close allies start buying back in, the numbers point to a new chapter: Trump, who once held over 52% of DJT stock, may soon become the figurehead of a company he no longer controls. Meanwhile, institutions like Vanguard and Fidelity are quietly building their footprint behind the scenes. Disclaimer & Disclosure Report an Issue
Yahoo
a day ago
- Business
- Yahoo
Trump Media Has $2.3B in Bitcoin Buying Power After Closing Capital Raise
Trump Media and Technology Group (DJT), the operator of Truth Social, said on Friday it has closed a $2.44 billion fundraising deal to establish a bitcoin BTC treasury. DJT shares erased early morning losses and were up 5.6% on the day following the news. The company sold nearly 56 million shares at $25.72 apiece and issued $1 billion in 0% convertible notes maturing in 2028, according to a press release. Some 50 institutional investors subscribed to the offering. The placement was led by Yorkville Securities and Clear Street, with Cantor Fitzgerald serving as financial advisor. The firm said it will direct the net proceeds of $2.32 billion to purchase BTC for its treasury, with and Anchorage Digital providing custody services. The move adds the company to a growing list of publicly-traded firms that have raised capital for adding crypto assets like bitcoin to their balance sheet, a playbook pioneered by Michael Saylor's Strategy (MSTR). The software firm has become the world's largest corporate holder of the leading crypto asset, accumulating over $60 billion in BTC by financing the purchases via a combination of equity and debt issuances. Trump Media shared plans earlier this year to launch a financial services platform focusing on crypto and customized exchange-traded funds. It also said it wants to partner with crypto exchange to launch the ETF products.
Yahoo
2 days ago
- Business
- Yahoo
Trump Media Plunges 13% Despite $2.5B Bitcoin Treasury Play: Market Questions Bold Crypto Pivot
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Trump Media and Technology Group (NASDAQ:DJT) announced a $2.5 billion capital raise to purchase bitcoin for its corporate treasury, marking another high-profile entry into the 'corporate bitcoin strategy' playbook. While the move follows MicroStrategy's (NASDAQ:MSTR) wildly successful template, investors should carefully evaluate whether this represents sound financial strategy or speculative positioning tied to political branding. The market's initial response to the bitcoin strategy announcement was decidedly negative. Shares of Trump Media dropped 13% on Tuesday, falling from $27 to $23, suggesting significant investor skepticism about the bold treasury transformation. This decline occurred despite the broader crypto-positive sentiment in markets, indicating concerns specific to the company's execution capabilities or valuation implications of the capital raise. Don't Miss: — no wallets, just price speculation and free paper trading to practice different strategies. Grow your IRA or 401(k) with Crypto – . Trump Media's fundraising approach reveals a sophisticated capital structure designed to minimize immediate dilution while capitalizing on current market conditions: Equity Component: $1.5 billion through stock sales at the last closing price Debt Component: $1 billion in convertible notes priced at a 35% premium This mixed approach allows the company to raise substantial capital while giving investors upside participation through the convertible feature. The 35% premium on the convertible notes suggests strong investor appetite, though it also indicates the speculative nature of the investment thesis. However, the immediate 13% stock decline suggests the market may be concerned about dilution or execution risk despite the structured approach. Trump Media's move comes as corporate bitcoin adoption has evolved from experimental to mainstream among certain sectors: MicroStrategy's Success Story: The business intelligence company, now rebranded as Strategy, has become the poster child for corporate bitcoin investment. With $23.91 billion in crypto assets and shares that gained over 600% in 2024, MicroStrategy proved that aggressive bitcoin positioning can create extraordinary shareholder value. Market Capitalization Impact: Strategy's market value reached nearly $94 billion, demonstrating how bitcoin holdings can dramatically amplify a company's valuation beyond its core operating business. Emerging Trend: Companies, including GameStop (NYSE:GME) and various biotech firms, have attempted to replicate this success, though with mixed results. Current Financial Foundation Trump Media brings several advantages to this strategy: Cash Position: $759 million in existing cash and short-term investments provides a solid foundation Custody Infrastructure: Partnerships with Anchorage Digital and ensure institutional-grade security Political Alignment: The company benefits from the Trump administration's pro-crypto stance Strategic Rationale CEO Devin Nunes framed the investment as acquiring 'crown jewel assets consistent with America First principles,' positioning bitcoin as an 'apex instrument of financial freedom.' This messaging aligns perfectly with the current administration's digital asset embrace and could resonate with the company's target demographic. Risk Factors to Consider Execution Risk: Unlike MicroStrategy which has years of experience managing large bitcoin positions, Trump Media is new to crypto treasury management. Business Model Diversification: The company is simultaneously pursuing financial services expansion, M&A opportunities, and various crypto ventures, potentially spreading focus thin. Regulatory Exposure: Heavy bitcoin positioning creates vulnerability to potential regulatory changes, despite current favorable conditions. Market Confidence: The immediate 13% decline suggests investors may be questioning whether Trump Media can successfully execute this complex strategy or whether the valuation premium is justified. Trending: New to crypto? on Coinbase. Current Crypto Environment The timing appears strategically sound from a macro perspective: Bitcoin recently achieved new all-time highs above $111,000 Institutional adoption continues accelerating Regulatory environment under Trump administration remains crypto-friendly Corporate treasury adoption gaining mainstream acceptance Competitive Landscape The announcement of Twenty One Capital – valued at $3.6 billion – through Cantor Fitzgerald, Tether, and demonstrates continued institutional interest in bitcoin-focused investment vehicles. This validates the thesis that bitcoin treasury strategies can attract significant capital. For DJT Shareholders Potential Upside: Leveraged exposure to bitcoin price appreciation Multiple expansion similar to MicroStrategy's experience First-mover advantage in politically aligned crypto investing Key Risks: Bitcoin volatility could dramatically impact share price Execution risk from management team without crypto experience Potential dilution from the equity raise Market skepticism evidenced by the 13% decline suggests investors remain unconvinced about the strategy's merit Broader Market Impact This move reinforces several important trends: Corporate bitcoin adoption becoming standard practice for certain company types Political alignment increasingly influencing investment strategies Traditional revenue diversification giving way to balance sheet diversification Trump Media's bitcoin strategy appears well-timed and properly structured, but success will depend on execution and market conditions. The company benefits from favorable political winds and proven demand for bitcoin-leveraged equity exposure. However, the immediate 13% stock drop from suggests the market views this as a high-risk transformation that may not justify current valuations. Investors should recognize this as a high-risk, high-reward play that transforms Trump Media into a bitcoin proxy with social media operations attached. Key factors to monitor: Bitcoin price performance and its impact on DJT's market valuation Successful deployment of the $2.5 billion into bitcoin positions Integration of crypto strategy with existing business operations Market confidence recovery following the initial 13% decline Regulatory developments that could impact crypto-heavy corporate strategies Trump Media's bitcoin bet represents a calculated attempt to replicate MicroStrategy's success while leveraging political alignment and timing. However, the immediate market reaction suggests significant investor skepticism about execution risk and valuation concerns. While the strategy has proven successful elsewhere, the market's negative response indicates investors must weigh the potential for extraordinary returns against substantial execution risks and dilution concerns. The move signals continued mainstream adoption of corporate bitcoin strategies, but Trump Media's individual success will depend on management execution, market timing, and the company's ability to restore investor confidence while managing a complex transformation from social media company to diversified financial services and crypto investment vehicle. For investors, this represents a leveraged bet on both bitcoin appreciation and Trump Media's ability to overcome market skepticism while executing one of the most ambitious corporate treasury transformations in recent memory. Read Next: A must-have for all crypto enthusiasts: . 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Image: Shutterstock Send To MSN: 0 This article Trump Media Plunges 13% Despite $2.5B Bitcoin Treasury Play: Market Questions Bold Crypto Pivot originally appeared on
Globe and Mail
3 days ago
- Business
- Globe and Mail
DJT Stock Ping-Pongs Up and Down as Trump Media Dives into Bitcoin
Trump Media & Technology Group (DJT) jumped 10% in premarket trading — but those gains didn't stick. By market close, shares were down nearly 10%, reversing the morning's excitement. The swing came after a Financial Times report claimed DJT is planning to raise as much as $2.5 billion to invest in cryptocurrencies. Confident Investing Starts Here: For a company best known for its social platform Truth Social — and its ties to former President Donald Trump, who owns 52% — the move would be daring, risky, and very on-brand. Bitcoin Momentum Meets Trump Volatility This comes just days before the Bitcoin 2025 conference in Las Vegas. The timing isn't subtle. Speakers include Vice President JD Vance and Trump's sons Donald Jr. and Eric Trump, making the event as political as it is financial. If Trump Media makes the crypto jump official at the event, it would send a clear signal that DJT is aligning itself with Bitcoin's resurgence. Remember, Bitcoin just hit an all-time high last week. Hype is high. And DJT is no stranger to hype-fueled moves. $2.5 Billion in Crypto? That's Not a Side Bet A raise of $2.5 billion isn't a toe-dip. That's a strategic repositioning. For context, DJT stock itself has traded like a meme stock — from $51 last October, plunging to $17 in April, and now rebounding post-election. But why crypto? Simple: volatility attracts attention. And in a market where DJT's growth prospects are still murky, a splashy pivot into Bitcoin could reignite investor interest. The company isn't profitable. Truth Social's user base is niche. Crypto is a way to plug into broader capital flows — and perhaps to signal financial alignment with a digital-first, anti-establishment crowd. At the time of writing, Bitcoin is sitting at $109,526.
Yahoo
3 days ago
- Business
- Yahoo
Trump Media Raises $2.5B for Bitcoin Treasury Strategy
Trump Media and Technology Group Corp. (DJT) announced a $2.5 billion fundraise from institutional investors to create one of the largest Bitcoin treasury allocations by a public company, according to a press release. The company entered subscription agreements with approximately 50 institutional investors for $1.5 billion in common stock and $1 billion in convertible notes, according to the filing. DJT shares fell 10% following Tuesday's announcement and dropped another 1.9% as of midday Wednesday. The Bitcoin treasury strategy represents Trump Media's expansion from a social media platform into financial services, positioning the company to capitalize on cryptocurrency adoption while building reserves outside traditional banking systems. The offering is expected to close May 29, according to the company. Trump Media intends to use proceeds entirely for Bitcoin purchases, which will be held alongside $759 million in existing cash and short-term investments as of the first quarter. CEO Devin Nunes called Bitcoin an "apex instrument of financial freedom" in the announcement. The move aims to "defend our Company against harassment and discrimination by financial institutions," according to Nunes. and Anchorage Digital will provide custody services for the Bitcoin holdings, according to the filing. The same partnership recently enabled Trump Media's planned exchange-traded fund launch through its brand. Read More: Trump Media and Team Up for ETF Launch The fundraising follows Trump Media's broader financial services push, including trademark filings for three ETFs under the Made in America ETF, the U.S. Energy Independence ETF and the Bitcoin Plus ETF. Those funds will combine digital assets with "Made in America" securities across multiple sectors. The company plans to invest up to $250 million of its own reserves into these products through Charles Schwab as custodian, according to previous filings. Bitcoin custody will be split between and Anchorage Digital. Trump Media operates the Truth Social and Truth+ streaming platforms alongside its expanding financial brand. The company reported $3.6 million in revenue and a $400 million net loss in 2024, according to CNBC. The Bitcoin allocation joins a growing trend of politically aligned businesses converting corporate treasuries to cryptocurrency. Michael Saylor's Strategy Inc. (MSTR) popularized the strategy, holding over $40.6 billion in Bitcoin as of May 25, according to a company | © Copyright 2025 All rights reserved
