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Yahoo
3 days ago
- Business
- Yahoo
Trump Media Closes Bitcoin Treasury Deal
Company Launches Far-Reaching Bitcoin Treasury Strategy SARASOTA, Fla., May 30, 2025 (GLOBE NEWSWIRE) -- Trump Media and Technology Group Corp. (Nasdaq, NYSE Texas: DJT) ("Trump Media" or the "Company"), operator of the social media platform Truth Social, the streaming platform Truth+, and the FinTech brand announced today that it has closed its previously announced private placement offering ('the Offering') with approximately 50 institutional investors. The Offering consisted of the sale of (i) 55,857,181 shares of the Company's common stock, at a price of $25.72 per share, for gross proceeds of approximately $1.44 billion and (ii) 0.00% convertible senior secured notes due 2028 in the principal amount of $1.00 billion, at the conversion price of $34.72 per share, for an aggregate purchase price of approximately $2.44 billion. Trump Media will use the approximately $2.32 billion in net proceeds from the Offering to create a Bitcoin treasury and for other general corporate purposes and working capital. One of the largest Bitcoin treasury deals for any public company, the net proceeds from this Offering and the Company's strategy will make Trump Media one of the top Bitcoin holders among publicly-traded U.S. firms with one of the most comprehensive Bitcoin treasury strategies. Trump Media's CEO and Chairman Devin Nunes said, 'Trump Media is focused on acquiring great assets, and this deal will give us the financial freedom to implement the rest of our strategies. It means the Company will have more than $3 billion in liquid assets and our shareholders will have exposure to Bitcoin. The deal positions Trump Media for the kind of rapid expansion we've always envisioned, and we look forward to advancing even further throughout the America First economy.' The Offering will place Bitcoin on Trump Media's balance sheet alongside existing cash, cash equivalents, and short-term investments totaling $759.0 million as of the end of the first quarter of 2025. Yorkville Securities, LLC and Clear Street LLC acted as Co-lead placement agents, with BTIG, LLC and Cohen & Company Capital Markets acting as Co-placement agents (collectively, the 'Placement Agents'). Cantor Fitzgerald & Co. acted as financial advisor. Nelson Mullins Riley & Scarborough LLP is serving as legal counsel to the Company. Reed Smith LLP is serving as legal counsel to the Placement Agents. and Anchorage Digital will provide custody for Trump Media's Bitcoin treasury. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in the United States or any other state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Cautionary Statement About Forward-Looking Statements This press release includes forward-looking statements regarding, among other things, the plans, strategies, and prospects, both business and financial, of Trump Media. We have based these forward-looking statements on our current expectations and projections about future events, including expected potential merger & acquisition activity, the rollout of products and features, our Bitcoin treasury strategy, the future plans, timing and potential success of the streaming services and the launch and success of our financial services and FinTech platform. Although we believe that our plans, intentions, and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions, or expectations. Forward-looking statements are inherently subject to risks, uncertainties, and assumptions. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events, or results of operations, are forward-looking statements. These statements may be preceded by, followed by, or include the words "believes," "estimates," "expects," "projects," "forecasts," "may," "will," "should," "seeks," "plans," "scheduled," "anticipates," "soon," "goal," "intends," or similar expressions. Forward-looking statements are not guarantees of future performance, and involve risks, uncertainties and assumptions that may cause our actual results to differ materially from the expectations that we describe in our forward-looking statements. There may be events in the future that we are not accurately able to predict, or over which we have no control. About Trump Media The mission of Trump Media is to end Big Tech's assault on free speech by opening up the Internet and giving people their voices back. Trump Media operates Truth Social, a social media platform established as a safe harbor for free expression amid increasingly harsh censorship by Big Tech corporations, as well as Truth+, a TV streaming platform focusing on family-friendly live TV channels and on-demand content. Trump Media is also launching a financial services and FinTech brand incorporating America First investment vehicles. Investor Relations Contact Shannon Devine (MZ Group | Managing Director - MZ North America)Email: Media Contact press@ while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
USA Today
3 days ago
- Business
- USA Today
Is Trump Media stock a buy after dropping over 50% from its 52-week high?
Is Trump Media stock a buy after dropping over 50% from its 52-week high? Show Caption Hide Caption What is 'TACO trade,' a new phrase angering President Trump? 'TACO trade' is a jab at President Donald Trump's propensity to impose or threaten tariffs and later back off. Perhaps no stock's performance is more impacted by President Donald Trump's actions than Trump Media & Technology Group (NASDAQ: DJT). Although the Trump administration's recent tariff policies affected the entire stock market, Trump Media has specifically stated its success depends in part on President Trump's popularity. This has played out in Trump Media's share price, which zoomed up to a 52-week high of $54.68 just days before the presidential election. But economic uncertainty fueled by inflation and further impacted by the dynamic tariff situation sank the company's stock. At the time of this writing, its share price is less than half what it was before Donald J. Trump's election win. Does this bring Trump Media shares into buy territory? Or do reasons exist to avoid the stock? Let's dig into the company to find out. Trump Media's business performance Trump Media relies entirely on revenue from digital advertising run on Truth Social, its social media platform. The company also provides consumers a streaming video product, Truth+, and recently announced a financial offering called However, by the end of the first quarter, neither Truth+ nor had produced income. Trump Media's sole source of sales, Truth Social, delivered $821,200 in Q1 revenue, a 7% increase from the prior year. This is a promising start to 2025 since the company ended 2024 with a 12% year-over-year decline in sales to $3.6 million. In addition, Trump Media boasts a strong balance sheet. Total assets were $918.9 million compared to $27.2 million in total liabilities at the end of Q1. The company has amassed a war chest of $759 million in Q1 cash, cash equivalents, and short-term investments. But that's where Trump Media's strengths end. Areas of concern with Trump Media An investment in Trump Media carries several outsized risks. Perhaps the biggest is that 93% of its revenue comes from a single customer. If that client decides to leave, Trump Media's income collapses. Also, the company is standing on shaky financial ground. Trump Media is not profitable, with a Q1 net loss of $31.7 million. This is because its Q1 operating costs totaled $40.4 million. But a greater issue is the tepid revenue generated from Trump Media's offerings. Truth Social's sales aren't covering its expenses, so it's crucial for the company's new Truth+ and products to provide income soon. Another concern is that Trump Media noted in its Q1 earnings report that there existed "material weakness in our internal controls over financial reporting," and it lacked "accounting personnel who have the requisite experience in [Securities and Exchange Commission] reporting regulation." This means its financial statements could contain errors and, depending on the extent of those mistakes, may lead to a misrepresentation of Trump Media's finances. Although the firm is working to address this issue, the integrity of its earnings reports is questionable at this time. Making a decision on Trump Media stock Trump Media is in a precarious predicament, given the high costs of operating its business relative to the meager sales it's bringing in. However, its emerging products might deliver the revenue Trump Media desperately needs, and its excellent balance sheet can sustain the company while these products build up their income streams. So, does the company's substantial stock price drop from its 52-week high tip the decision toward purchasing shares? Answering this question requires assessing whether its stock valuation is reasonable. You can gauge this with the price-to-sales (P/S) ratio, which tells you how much you're paying for every dollar of revenue the company earned during the trailing 12 months. This metric is commonly used to evaluate stocks for unprofitable businesses, such as Trump Media. Over the past year, the company's P/S multiple has undergone wild swings. Although it's not at its peak at the time of this writing, it's still exceedingly elevated, suggesting the stock is overpriced despite falling more than 50% from its high. Given a pricy stock combined with significant risks, such as the potential for financial reporting errors and reliance on a single customer for nearly all its revenue, Trump Media shares are not a good investment at this time. Perhaps the company deserves another look if its Truth+ and products eventually generate sales. For now, there aren't enough compelling reasons to buy Trump Media stock. Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY. Should you invest $1,000 in Trump Media & Technology Group right now? Offer from the Motley Fool: Before you buy stock in Trump Media & Technology Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Trump Media & Technology Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider whenNetflixmade this list on December 17, 2004... if you invested $1,000 at the time of our recommendation,you'd have $639,271!* Or when Nvidiamade this list on April 15, 2005... if you invested $1,000 at the time of our recommendation,you'd have $804,688!* Now, it's worth notingStock Advisor's total average return is957% — a market-crushing outperformance compared to167%for the S&P 500. Don't miss out on the latest top 10 list, available when you joinStock Advisor. See the 10 stocks »
Yahoo
4 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
Yahoo
4 days ago
- Business
- Yahoo
Trump's control over Truth Social could weaken as new shares are issued
The election of Donald Trump provided a big boost for Bitcoin, as the incoming president promised to make the U.S. 'the crypto capital of the planet.' But when Trump Media & Technology Group announced on Tuesday it was investing $2.5 billion in a Bitcoin reserve, his company's stock plunged 10%. It has recovered slightly since, but is still at its lowest point in the past month. That's likely because in diluting the Trump family's share of the company's stock below 50%, the Trumps could be outvoted. The company — which owns Truth Social, the social media site launched in 2022, a year after the Jan. 6 insurrection — has never made a profit. Before it went public in March 2024, Donald Trump owned 90% of the company. Since returning as president, he put his shares in a 'revocable trust,' in the name of his son Donald Trump Jr., with 114.8 million shares in Trump Media before Tuesday's announcement, which adds 58.3 million shares to the issuance plan. The company does not have a separate share class with voting rights, which now puts Trump control of Trump Media in jeopardy. Earlier this month, Barron's reported that Trump Media's CEO, former California congressman Devin Nunes, 'was awarded $47,640,469 in stock and cash compensation last year, when the company's revenue was $3,618,800. That put Nunes' compensation at 13 times annual revenue.' This time last year, Trump Media was considered a meme stock. In Q1 2025, the company posted a net loss of $31.7 million, with operating costs of $40.4 million, though revenue was up 7% year-over-year. That was a bump after its 2024 ended with a 12% year-over-year decline. Last October, Trump Media expanded beyond Truth Social to launch a video streaming service, Truth+, 'where you can watch the news you trust and shows and movies that Big Media has tried to blacklist,' according to the company's website. Earlier this year it launched a financial services platform, For the latest news, Facebook, Twitter and Instagram. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Epoch Times
5 days ago
- Business
- Epoch Times
Trump Media to Raise $2.5 Billion for Bitcoin Treasury
Trump Media & Technology Group (TMTG) said on Tuesday that institutional investors will purchase $2.5 billion in the company's stock, with the proceeds going toward a bitcoin reserve. The deal comprises $1.5 billion in common stock and another $1 billion in convertible notes priced at a 35 percent premium, according to a Bitcoin will be held on TMTG's balance sheet alongside existing cash, cash equivalents, and short-term investments totaling $759 million as of the end of the first quarter of 2025, according to the statement. TMTG said it has subscription agreements with approximately 50 institutional investors and that the proceeds have been earmarked for the creation of a 'Bitcoin treasury.' Crypto platforms Anchorage Digital and will provide custody for the treasury, the company said. Along with social media platform Truth Social and the streaming platform Truth+, TMTG also operates financial services platform Related Stories 5/1/2025 3/26/2025 In March, TMTG 'We view Bitcoin as an apex instrument of financial freedom, and now Trump Media will hold cryptocurrency as a crucial part of our assets,' TMTG CEO and Chairman Devin Nunes said in Tuesday's statement. The former congressman said the investment will help defend the company against 'harassment and discrimination by financial institutions,' behavior he said plagues 'many Americans and U.S. firms.' The investment will 'create synergies for subscription payments, a utility token, and other planned transactions across Truth Social and Truth+,' Nunes said. 'It's a big step forward in the Company's plans to evolve into a holding company by acquiring additional profit-generating, crown jewel assets consistent with America First principles.' Shares of the company were up by 2.47 percent as of early Wednesday morning but have declined by more than 53 percent over the past 12 months. Trump Admin Touts Digital Assets The announcement comes as the Trump administration continues to embrace digital assets, which Trump widely touted throughout his 2024 election campaign. In 2019, however, he In January, Trump signed an The group will comprise several senior officials, including the secretary of the treasury and the secretary of homeland security, and will be chaired by David Sacks, the White House's special adviser for artificial intelligence and crypto, according to the order. It will be tasked with proposing a 'federal regulatory framework governing the issuance and operation of digital assets, including stablecoins,' the order stated. Trump's order said that the digital asset industry 'plays a crucial role in innovation and economic development in the United States, as well as our Nation's international leadership.' In March, Trump also That announcement prompted pushback from Sen. Elizabeth Warren (D-Mass.), who said it 'triggered a surge in crypto prices before a sharp drop, raising concerns about possible market manipulation and insider trading.' In a March In April, Warren also 'All SEC decisions and actions involving TMTG and President Trump's financial interests should be carefully managed to ensure that they are free from undue political interference and influence from the President and his administration,' Warren said. The Epoch Times contacted the White House for comment but did not receive a response by publication time.
