Key Highlights
- Trump Media has finalized a $2.44 billion capital raise, aimed at forming a Bitcoin treasury.
- The company issued $1.44 billion in common stock and $1 billion in convertible notes to about 50 institutional investors.
- This initiative positions them as one of the largest publicly-traded Bitcoin holders in the U.S.
Overview
Trump Media and Technology Group (DJT), known for operating Truth Social, announced on Friday the closure of a $2.44 billion fundraising effort targeted at creating a Bitcoin treasury. Following this announcement, DJT shares saw a 5.6% increase for the day.
The company sold close to 56 million shares at $25.72 each and also initiated $1 billion in zero-interest convertible notes with a 2028 maturity.
They plan to utilize the net proceeds of around $2.32 billion for Bitcoin purchases, with custody services provided by Crypto.com and Anchorage Digital. This move aligns with a growing trend where publicly traded companies, inspired by figures like Michael Saylor, build up Bitcoin assets on their balance sheets.
Trump Media previously revealed its intention to introduce a financial services platform centered on cryptocurrency and custom exchange-traded funds, alongside plans to collaborate with Crypto.com for ETF products.
“The company will leverage the funds to bolster its Bitcoin holdings, following a popular emerging trend among public firms.”
This article provides insights into the ongoing developments in the digital asset space, emphasizing the proactive approach companies are taking towards integrating Bitcoin into their financial strategies.
