President Donald Trump’s media company announced on Tuesday that institutional investors will purchase $2.5 billion in the company’s stock, with the funds earmarked for building a bitcoin reserve.
Around 50 institutional investors are set to invest $1.5 billion in the company’s common shares through a private placement, while an additional $1 billion will be raised through convertible senior notes, according to Trump Media and Technology Group, the operator of Truth Social and other ventures.
Trump Media stated that the proceeds will be used to establish a “bitcoin treasury.”
Other companies have implemented similar strategies involving cryptocurrency. For instance, cloud and mobile software developer MicroStrategy Inc. has accumulated a bitcoin treasury worth billions by utilizing stock sales and debt financing.
During a campaign event at his Mar-a-Lago resort in May 2024, Trump reportedly secured commitments from cryptocurrency backers to spend heavily on his reelection efforts.
More recently, Trump hosted an exclusive dinner at a high-end Virginia golf club for 220 major investors in $Trump—a meme coin bearing his name. The event has drawn criticism, with some accusing the former president of blurring the lines between his political influence and personal financial interests.
