TL;DR
- Trump Media closed a private offering worth $2.44 billion, combining the sale of 55.8 million shares and zero-coupon convertible notes totaling $1 billion.
- It will allocate $2.32 billion to establish a Bitcoin treasury, raising its liquid assets to over $3 billion, including cash and other short-term investments.
- Crypto.com and Anchorage Digital will custody the Bitcoin; the company aims to replicate the Bitcoin reserve model adopted by Strategy to support its growth.
Trump Media and Technology Group closed a private placement raising nearly $2.44 billion, with about 50 institutional investors participating. The deal combined the sale of 55.8 million common shares at $25.72 each and zero-percent convertible senior secured notes with a principal amount of $1 billion, convertible at $34.72 per share.
The company will use approximately $2.32 billion of the net proceeds to create a Bitcoin treasury, as well as cover other corporate expenses and working capital. This purchase will place Trump Media among the leading publicly traded U.S. companies with significant Bitcoin holdings, following a strategy aimed at leveraging BTC’s stability and potential.
At the end of the first quarter of 2025, Trump Media had $759 million in cash, cash equivalents, and other short-term investments. Adding Bitcoin to its balance sheet will increase its liquid assets to over $3 billion.
Devin Nunes, CEO and chairman of the company, said this transaction will give Trump Media the financial flexibility to pursue its growth plans. He also highlighted that the move offers shareholders direct exposure to Bitcoin, potentially strengthening their investment portfolios.
Trump Media Will Delegate Custody of Its Bitcoin
After the initial announcement, Trump Media’s shares (ticker DJT) dropped 10%, but later recovered to close up 3.3% at $21.52. Despite the rebound, the stock remains down more than 36% year to date.
To custody the acquired Bitcoin, the company entrusted Crypto.com and Anchorage Digital, two well-known platforms in the crypto market. The transaction received financial backing from firms including Yorkville Securities and Clear Street as lead placement agents, with legal counsel provided by Nelson Mullins Riley & Scarborough and Reed Smith.
This strategy follows the path set by companies like Strategy, which has maintained a large Bitcoin reserve in its treasury for years. With this purchase, Trump Media aims to replicate that model, integrating Bitcoin into its financial strategy to support growth and strengthen operations.
