Key Takeaways
Trump Media will raise $2.5 billion to create a substantial Bitcoin treasury.
The treasury deal includes $1.5 billion in common stock and $1 billion in convertible notes.
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Trump Media and Technology Group Corp (TMTG), which operates Truth Social, announced Tuesday its plan to raise $2.5 billion to create a Bitcoin treasury.The company’s approach will mirror Strategy’s Bitcoin playbook, with plans to issue $1.5 billion in common stock and $1 billion in convertible senior secured notes to approximately 50 institutional investors. The offering is expected to close on May 29, 2025.“We view Bitcoin as an apex instrument of financial freedom, and now Trump Media will hold cryptocurrency as a crucial part of our assets,” said CEO and Chairman Devin Nunes. “Our first acquisition of a crown jewel asset, this investment will help defend our Company against harassment and discrimination by financial institutions, which plague many Americans and US firms, and will create synergies for subscription payments, a utility token, and other planned transactions across Truth Social and Truth+.”The convertible notes will have a 0.00% interest rate with a conversion price set at a 35% premium. The company reported $759.0 million in cash, cash equivalents, and short-term investments at the end of Q1 2025.Yorkville Securities, LLC and Clear Street LLC are serving as co-lead placement agents, with BTIG, LLC and Cohen & Company Capital Markets acting as co-placement agents. Crypto.com and Anchorage Digital will provide custody services for the Bitcoin treasury.This is a developing story.
