Trump's Media Gathers $2.5 Billion Fund to Set up Bitcoin Vaults
The Trump Media and Technology Group (DJT) has revealed plans to invest a substantial portion of the $2.5 billion it aims to raise into Bitcoin and other cryptocurrencies. This move is part of a broader strategy to establish a significant crypto treasury holding, aligning with the company's expansion goals in the digital and financial sectors.
The funds, secured through a private investment in a public company (PIPE) offering, will primarily be used to purchase Bitcoin for treasury holdings. In addition, Trump Media has filed with the SEC to launch several cryptocurrency-focused exchange-traded funds (ETFs).
One of these ETFs, the "Truth Social Crypto Blue Chip ETF," will allocate approximately 70% of its assets to Bitcoin, 15% to Ethereum, and the remainder spread among Solana, Cronos, and XRP. These ETFs are designed to offer investors exposure to major cryptocurrencies without direct ownership, and are set to trade on the NYSE Arca platform.
Devin Nunes, Trump Media's CEO and Chairman, has dubbed Bitcoin as the "apex of financial freedom." The acquisitions, consistent with America First principles, are intended to help defend the company against harassment and discrimination by financial institutions.
Furthermore, Trump Media plans to use the raised capital to create a Bitcoin treasury, evolve into a holding company by acquiring additional profit-generating, crown jewel assets, and synergise subscription payments, a utility token, and other planned transactions across Truth Social and Truth+.
The first acquisition, of a crown jewel asset, is expected to create significant synergies. The offering is expected to close on May 29 after fulfilling customary closing conditions, although no information about the closing date of the first acquisition was provided.
The announcement follows reports on Monday that claimed Trump Media was raising $3 billion to invest in Bitcoin and other cryptocurrencies. Crypto.com and Anchorage Digital have been secured as custodians for Trump Media's Bitcoin treasury.
Trump Media also plans to raise $1 billion in principal amount from issuing convertible notes and has entered into subscription agreements with over 50 institutional investors to raise approximately $1.5 billion from the sale of its common stock. The total amount of funds raised by Trump Media and Technology Group is expected to reach $2.5 billion, which will close its previously announced special acquisition fund.
This strategic investment in Bitcoin and other cryptocurrencies is a significant step for Trump Media as it seeks to expand its influence in the crypto investment space.
The funds acquired through the PIPE offering will primarily be used to purchase Bitcoin for Trump Media's treasury, aligning with its purpose of investing in cryptocurrencies. Additionally, Trump Media has filed with the SEC to launch several crypto-focused ETFs, such as the "Truth Social Crypto Blue Chip ETF," which plans to allocate a significant portion of its assets to Bitcoin, Ethereum, Solana, Cronos, and XRP.
