Trump Media shifts Strategy, Plans $2.5 Billion Bitcoin Investment
Washington D.C. – Trump Media & Technology Group (TMTG), the publicly traded company backed by former president Donald Trump, announced Tuesday it will invest $2.5 billion in Bitcoin, reversing an initial denial of the plan reported just a day earlier. The move positions TMTG alongside a growing number of companies accumulating Bitcoin as a key asset, offering investors exposure to the cryptocurrency without directly holding it.
The company intends to fund the investment through $1.5 billion in equity sales and $1 billion in debt. This dramatic shift comes after TMTG initially dismissed a report from the Financial Times as stemming from “dumb writers listening to even dumber sources.”
“We view Bitcoin as an apex instrument of financial freedom, and now Trump Media will hold cryptocurrency as a crucial part of our assets,” stated TMTG CEO Devin nunes in a press release. He added the investment is a step towards transforming TMTG into a holding company focused on acquiring “profit-generating, crown jewel assets consistent with America First principles.”
A Family affair: Trump’s Expanding Crypto Ventures
TMTG’s embrace of Bitcoin is the latest advancement in the Trump family’s increasingly important involvement in the cryptocurrency market. over the past year, Donald Trump and his family members have launched various crypto-related ventures, despite facing scrutiny over potential conflicts of interest and allegations of exploiting their positions for financial gain.
These ventures include:
TrumpCoins: Both Donald and Melania Trump launched their own branded cryptocurrencies in January, reportedly adding billions to their net worth. Truth.Fi: TMTG’s fintech division, launched in January, partnered with Crypto.com to offer crypto investment products.
American Bitcoin: Donald Trump Jr. and Eric Trump recently established a Bitcoin mining operation.
World Liberty Financial: The Trump sons have also promoted this crypto services company, wich has raised ample capital through token sales.These ventures have collectively raised hundreds of millions of dollars, fueled in part by aggressive marketing and the trump brand.
Bitcoin Treasury Stocks: A Growing Trend
TMTG’s strategy mirrors that of “Bitcoin treasury stocks,” companies that hold significant amounts of Bitcoin on their balance sheets. The theory is that the stock price will correlate with the price of Bitcoin, providing investors with an choice way to gain exposure to the cryptocurrency.
However, this approach is not without risk.
