Trump Media Raises $2.5 Billion to Invest in Bitcoin
May 27, 2025
In a significant shift towards the cryptocurrency market, Trump Media & Technology Group (TMTG), the parent company of the social media platform Truth Social, has announced plans to raise $2.5 billion from institutional investors for the purpose of investing in Bitcoin. This move signals a notable transformation for the company as it seeks to diversify its interests beyond social media into financial services and digital currency.
Details of the Fundraising Initiative
TMTG is poised to generate $1.5 billion by selling around 58 million shares to approximately 50 institutional investors, at a price of $25.72 per share. Additionally, the company plans to raise an extra $1 billion through the issuance of bonds that may be converted into shares in the future. This financial strategy indicates TMTG’s ambition to establish one of the largest corporate reserves for Bitcoin investment.
With President Trump owning just over 50 percent of TMTG’s stock—valued at around $2.7 billion—it is one of his most significant investments. The shares held by the former president are managed by a trust overseen by his eldest son, Donald Trump Jr., who is also a member of the TMTG board.
Market Impact
The announcement concerning the capital raise has not positively impacted Trump Media’s stock price, which saw a decline of over 10 percent on the day of the announcement and is down approximately 31 percent for the year. The potential dilution of stock value due to the large share sale may be contributing to investor concerns regarding current and future valuations.
Broader Context
This fundraising initiative comes amidst growing interest and participation from the Trump family in various cryptocurrency ventures. TMTG’s venture into Bitcoin investing mirrors strategies employed by other companies, notably reflecting the approach of Michael Saylor’s MicroStrategy, which has famously committed substantial resources to Bitcoin as a method of cash management.
As this deal unfolds, the cryptocurrency community and investors are closely monitoring TMTG’s next steps, particularly in how effectively they can implement their investment strategy and the long-term implications for both the company and the broader market.
With a current market capitalization of just over $5 billion, TMTG is at a crucial juncture. The forthcoming capital infusion could redefine its operational focus and potentially position it as a key player in the cryptocurrency landscape.
Share this article:
