Trump Media & Technology Group, the parent company of Truth Social, announced Tuesday that it has secured $2.5 billion in funding from institutional investors, with plans to establish a significant bitcoin reserve.
According to the company, roughly 50 institutional investors are participating in the deal, contributing $1.5 billion through the private placement of common stock and another $1 billion via convertible senior notes. The funds will be used to build what the company calls a “bitcoin treasury.”
Trump Media CEO and Chairman Devin Nunes said the investment will strengthen the company’s position and protect it from what he described as “harassment and discrimination” by financial institutions.
“This investment will help defend our Company against harassment and discrimination by financial institutions, which plague many Americans and U.S. firms,” Nunes stated in a press release.
The move places Trump Media among a growing number of U.S. companies turning to cryptocurrency as a treasury asset. MicroStrategy, a tech firm known for its cloud and mobile software, has similarly built a multibillion-dollar bitcoin reserve through stock offerings and debt instruments.
The announcement comes amid a broader shift in former President Donald Trump’s stance on cryptocurrencies. Once a vocal critic of digital assets—calling them “not money” and warning of their volatility—Trump has increasingly embraced the crypto world, especially as he ramps up his 2024 presidential campaign.
At a May campaign event held at Mar-a-Lago, Trump reportedly received pledges of significant financial support from cryptocurrency backers. More recently, he hosted a private dinner at an upscale golf club in Northern Virginia for top investors in the $Trump meme coin project, raising concerns over potential conflicts of interest between his business ventures and political ambitions.
In addition to its bitcoin reserve plans, Trump Media is exploring mergers, acquisitions, and the rollout of various retail investment products. Last month, the company entered into a binding agreement to develop crypto-related exchange-traded funds (ETFs) and other financial instruments aligned with Trump’s political platform.
The Trump family has rapidly expanded into the crypto space, launching ventures ranging from NFTs to a decentralized financial platform called World Liberty Financial, which features a U.S. dollar-pegged stablecoin.
However, this aggressive push into digital finance has sparked scrutiny. Senator Elizabeth Warren has called on the Securities and Exchange Commission to clarify how it plans to oversee ETFs tied to Trump Media and its cryptocurrency initiatives.
Despite the high-profile investment announcement, shares of Trump Media & Technology Group dropped 9% on Tuesday, reflecting investor uncertainty as the company moves deeper into the volatile world of cryptocurrency.
