TL;DR
- Trump Media will allocate $2.5 billion to a Bitcoin treasury, combining common stock and zero-interest convertible notes with a 35% premium.
- The company will use Bitcoin as a strategic asset for financial operations, payments, and future digital products within its ecosystem.
- Crypto.com and Anchorage Digital will handle custody, aiming for long-term storage with no short-term speculation.
Trump Media confirmed on Tuesday the creation of a $2.5 billion Bitcoin treasury. The deal was executed through private agreements with around 50 institutional investors and combines $1.5 billion in common stock with $1 billion in zero-interest convertible notes, the latter carrying a 35% premium over market value.
The company, controlled by Donald Trump, will add these funds to its balance sheet alongside the $759 million in cash and liquid assets it held at the end of the first quarter. The goal is to use Bitcoin as a strategic asset to support financial operations and shield itself from what its leadership describes as banking discrimination against certain businesses and industries.
Devin Nunes, Trump Media’s president and CEO, said Bitcoin would become part of the company’s permanent assets and serve as a foundation for future payment systems, a utility token, and transactions linked to its digital services. The company currently operates Truth Social, its social media platform, the streaming service Truth+, and the fintech brand Truth.Fi. It plans to transition into a holding company structure managing assets it deems strategic under economic principles aligned with Trump’s political agenda.
Trump Media Won’t Engage in Short-Term Bitcoin Speculation
Crypto.com and Anchorage Digital will manage the digital assets, signaling a long-term storage strategy with no plans for short-term speculation. Trump Media did not disclose the exact timing or amount of Bitcoin it would purchase but confirmed that this deal permanently closes its previously announced special acquisition fund.
The transaction involved several financial and legal firms. Yorkville Securities and Clear Street led the placement, with BTIG and Cohen & Company Capital Markets as co-placement agents. Cantor Fitzgerald served as financial advisor, while Nelson Mullins Riley & Scarborough and Reed Smith provided legal counsel.
The Trump family has been active in the crypto world through various initiatives, including NFT collections, mining projects, and backing crypto exchanges. Following this announcement, Senator Elizabeth Warren asked the SEC to clarify its position on regulating cryptocurrency-linked financial products that Trump Media plans to introduce.
