- Trump Media confirmed a US$2.5B raise, with one US$1.5B in stock and another US$1B in notes to buy Bitcoin, just a day after mocking the original report from The Financial Times.
- The company will custody BTC with Anchorage Digital and Crypto.com, alongside US$759M in existing liquid assets.
- TMTG stock dropped over 12% post-announcement.
Trump Media and Technology Group (TMTG), the parent company of Truth Social and partially owned by President Donald Trump, has confirmed a US$2.5B (AU$3.8B) capital raise to acquire Bitcoin, one day after ridiculing reports that the deal was in progress.
The funding split includes a US$1.5B (AU$2.33B) sale of common stock at its latest closing price and another US$1B (AU$1.56B) from convertible senior secured notes, priced at a 35% premium and carrying a 0% coupon. The deal is expected to close on May 29.
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According to the press release, its Bitcoin holdings will sit alongside US$759M (AU$1.1B) in cash and short-term investments recorded at the end of Q1. Anchorage Digital and Crypto.com will handle custody of the digital assets.
We view Bitcoin as an apex instrument of financial freedom, and now Trump Media will hold cryptocurrency as a crucial part of our assets. This investment will help defend our Company against harassment and discrimination by financial institutions.
Devin Nunes, Trump Media CEO.The confirmation follows public mockery of the initial report by the Financial Times, which cited sources familiar with the fundraising plans. As Crypto News Australia reported, TMTG’s comment to the outlet was: «Apparently, the Financial Times has dumb writers listening to even dumber sources.»
TMTG Stock Price Tanks on News
Markets did not react favorably. TMTG shares fell over 12% following the announcement, trading at around US$23.05 (AU$35.7) at press time, according to Google Finance data.
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The move aligns Trump Media with a growing group of publicly traded companies adopting Bitcoin strategies, following the model popularised by none other than Strategy (formerly MicroStrategy), which recently disbursed another small amount of capital, around US$427M (AU$658M) to buy 4,020 BTC.
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