Trump media said the money will be used to create a "bitcoin treasury."
President Donald Trump's social media company said Trump's media and technology group will raise about $2.5 billion to invest in Bitcoin as it hopes to diversify by driving revenues in the financial sector.
The company said in a statement Tuesday that it is selling $1.5 billion in shares at its last closing price and $1.5 billion in shares at a 35% premium. The company said the money will be used to build the "bitcoin treasury."
Bitcoin will be held at the end of the first quarter along with existing cash and short-term investments totaling $759 million on Trump’s media’s balance sheet. Crypto Platform Anchor Digital and Crypto.com will provide custody of Bitcoin Holdings.
"We see Bitcoin as the highest tool for financial freedom," said Devin Nunes, Trump Media CEO. The move is a "big step forward" in the company's plan to acquire Crown Jewel assets that are consistent with the United States First Principles.
The company's stake in the stock behind Truth Social, a streaming and social media platform, dropped 6% early trading.
The Trump media has been exploring potential mergers and acquisitions as it aims to diversify financial services.
Last month, it reached a binding agreement to launch retail investment products, including cryptocurrencies and exchange-traded funds that are aligned with Trump’s policies.
The Trump family, long-standing roots in skyscrapers and golf clubs, has already opened multiple beachheads in cryptocurrencies, quickly gaining hundreds of millions of dollars. Its other cryptocurrency includes Trump’s Undrinking Token (NFTS), a meme coin, a stake in the newly formed Bitcoin producer called the U.S. Bitcoin and cryptocurrency exchange world free finance.
But crypto enablers attracted scrutiny from lawmakers, including Democratic Senator Elizabeth Warren, who last month asked U.S. securities regulators about plans to oversee plans for an exchange-traded fund (ETF) launched by Trump’s media.
Trump called cryptocurrencies "non-money" in his first term, citing their volatility and value "based on thin air" and his perception of technology shifted.
During his event at the Mar-a-Lago club in Florida during the May 2024 presidential campaign, Trump was assured that crypto industry supporters would spend money heavily to get him re-elected.
Last week, Trump rewarded 220 top investors in one of his other cryptocurrency projects, $trump Meme Coin, for a stylish dinner at his luxury golf club in Northern Virginia, which inspired the president’s allegations that the president is fusing his duties at the White House with personal profits.