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Trump Media & Technology Group revealed plans Tuesday to raise $2.5 billion from institutional investors to buy Bitcoin, sending shares of the Truth Social parent company down more than 10% as investors questioned the strategic pivot.
The company will sell $1.5 billion in stock and $1 billion in convertible bonds to fund what CEO Devin Nunes called a “Bitcoin treasury.” The deal, expected to close Thursday, represents one of the largest corporate Bitcoin purchases by a public company.
“We view Bitcoin as an apex instrument of financial freedom, and now Trump Media will hold cryptocurrency as a crucial part of our assets,” Nunes said in Tuesday’s announcement.
Trump Media shares closed at $23.60, down from their opening price. The stock has fallen 31% this year despite Bitcoin trading near record highs above $108,000.
President Donald Trump owns roughly 115 million shares through a trust managed by his son Donald Jr. His stake is valued at about $2.7 billion. This makes the Bitcoin strategy personally important for the president.
The company recorded a $32 million loss on just $820,000 in revenue from advertising and other sources last quarter. Truth Social has struggled to generate meaningful advertising revenue despite serving as Trump’s primary communication platform.
Baylor University finance professor Mike Stegemoller characterized the move as Trump Media “throwing in the towel” on its original business model. “This does not look like a high-growth social media platform,” he observed.
The move follows the MicroStrategy model, where companies use equity and debt financing to purchase Bitcoin for corporate treasuries. Several other companies have adopted similar strategies, including GameStop and various biotech firms.
Crypto.com and Anchorage Digital will provide custody services for the Bitcoin holdings. Both companies recently partnered with Trump Media to launch exchange-traded funds later this year.
Nunes framed the Bitcoin purchase as defensive, saying it would “help defend our Company against harassment and discrimination by financial institutions.”
The announcement came after Trump Media initially denied a Financial Times report about the Bitcoin plans. Company representatives dismissed the publication’s sources as unreliable before confirming the strategy one day later. “Apparently, the Financial Times has dumb writers listening to even dumber sources,” company representatives told the publication.
About 50 institutional investors participated in the private placement. Yorkville Securities and Clear Street served as placement agents, while Cantor Fitzgerald provided financial advisory services.
The Bitcoin purchase aligns with President Trump’s pledge to make America the “crypto capital of the world” and follows his executive order establishing a national Bitcoin reserve earlier this year.
