Trump Media to Raise $2.5 Billion for Bitcoin Investment, Expanding into Financial Services
- Rahaman Hadisur
- May 28
- 2 min read
Hadisur Rahman, JadeTimes Staff
H. Rahman is a Jadetimes news reporter covering Business
Trump Media and Technology Group (TMTG), the parent company of the Truth Social platform, announced Tuesday that it will raise approximately $2.5 billion to invest in Bitcoin and expand its footprint in the financial services sector. The move marks a bold diversification strategy for the media firm founded by former U.S. President Donald Trump.
According to a company statement, the funds will be secured through the sale of $1.5 billion in common stock at its last closing price, alongside $1 billion in convertible notes priced at a 35% premium. The investment will significantly increase Trump Media’s balance sheet holdings, which included $759 million in cash and short-term investments at the end of Q1.
TMTG said its Bitcoin holdings will be securely custodied through partnerships with Anchorage Digital and Crypto.com. This signals a major foray into the cryptocurrency space, reinforcing the company's broader strategy of aligning itself with what it calls “America First” economic and technological principles.
"We view Bitcoin as an apex instrument of financial freedom," said CEO Devin Nunes. "This investment marks a big step forward in our mission to acquire and build crown jewel assets consistent with our values."
Shares of Trump Media dropped roughly 6% in early Tuesday trading following the announcement, as investors digested the risks and rewards of the firm’s high-profile pivot into digital assets.
The move is part of a broader initiative by the company to expand into financial services. In April, Trump Media reached a binding agreement to launch various retail investment products, including cryptocurrency offerings and exchange-traded funds (ETFs) that reflect Trump's nationalist economic agenda.
The Trump family’s increasing involvement in the crypto space has drawn considerable attention. Their ventures now span across multiple projects, including Trump NFTs, a pro-Trump meme coin, a stake in American Bitcoin (a new mining enterprise), and involvement with the cryptocurrency exchange World Liberty Financial. These initiatives have reportedly earned the Trump brand hundreds of millions in crypto-related revenue.
However, this aggressive crypto expansion has also attracted scrutiny from lawmakers. Last month, U.S. Senator Elizabeth Warren questioned the Securities and Exchange Commission (SEC) about how it plans to regulate the ETFs associated with Trump Media’s financial push.
As the company ventures further into volatile digital markets, it remains to be seen how this blend of political branding, media influence, and financial innovation will play out both for shareholders and the broader crypto ecosystem.
Comments