In a bold move poised to reshape the digital asset landscape, Trump Media & Technology Group (TMTG), the parent company behind the social media platform Truth Social, has revealed its intention to establish a substantial Bitcoin reserve totaling $2.5 billion. This strategic initiative, if successfully realized, would position TMTG among the leading public holders of the world’s premier cryptocurrency.
To fund this significant investment, TMTG has entered into preliminary agreements with over 50 institutional investors. The company plans to raise the necessary capital through the issuance of both common stock and convertible bonds. The closing of this offering is anticipated to occur by May 29, 2025.
Strategic Bitcoin Acquisition and Custody
The proceeds from this fundraising effort are earmarked for the creation of a robust Bitcoin treasury. Based on current market valuations, the announced sum would enable TMTG to acquire an estimated 22,768 BTC. To ensure the secure management of these digital assets, TMTG has designated Anchorage Digital and Crypto.com as custodians for its Bitcoin holdings.
Should this transaction come to fruition, Trump Media & Technology Group is projected to become one of the top three public companies globally with the largest Bitcoin reserves. This would signify a major shift in the institutional adoption of cryptocurrency, particularly from a media and technology firm closely associated with a prominent political figure.
Market Reaction and Broader Strategy
The announcement from Trump Media prompted notable, albeit temporary, fluctuations in the cryptocurrency market. Bitcoin’s price briefly surged, crossing the $110,000 mark before experiencing a slight pullback. Similarly, shares of Trump Media (DJT) on the Nasdaq exchange initially saw an uptick, only to revert to their prior closing levels.
TMTG emphasizes that the establishment of a Bitcoin reserve is an integral component of its broader vision to expand within the “America First” economy. This move aligns with previous statements from the company, which also included plans for the potential launch of a utility token within the Truth Social ecosystem.
This isn’t the first time Trump-affiliated entities have been linked to significant cryptocurrency investments. Earlier reports, including one from the Financial Times, suggested Trump Media was eyeing up to $3 billion for crypto acquisitions. While TMTG vehemently refuted those specific claims at the time, the latest announcement confirms a clear intent towards substantial digital asset integration. Furthermore, another project connected to Donald Trump’s family, World Liberty Financial, had previously announced its own plans for a cryptocurrency reserve.
Michael combines data-driven research with real-time market insights to deliver concise crypto and bitcoin analysis. He’s passionate about uncovering on-chain trends and helping readers make informed decisions.