President Donald Trump’s social media company, Trump Media & Technology Group (TMTG), has announced plans to invest in the market’s leading cryptocurrency Bitcoin (BTC) on Tuesday.
According to a report by Politico, the company, which oversees the Truth Social platform, has secured commitments from approximately 50 large investors to raise $2.5 billion through a combination of stock and debt.
Trump Media Expands Into Bitcoin
Devin Nunes, CEO of TMTG and a former Republican representative, remarked, “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 further described this Bitcoin investment as a pivotal step in defending the company against financial institutions that may impose discriminatory practices on Americans and US businesses.
Nunes also highlighted that the acquisition would enhance synergies related to subscription payments, a proposed utility token, and other financial transactions across Truth Social and the company’s streaming platform, Truth+. The company anticipates that the fundraising efforts will conclude by Thursday.
Beyond this, the move signals a growing interest in cryptocurrency from Trump and his family’s business ventures, which have seen setbacks in recent years.
Shares Of TMTG Drop Despite Initial Surge
The Trump family has previously supported various crypto initiatives, including World Liberty Financial (WLFI), while Eric Trump co-founded American Bitcoin, which recently announced plans to go public.
Just days before his inauguration back in January, President Donald Trump launched his own cryptocurrency, TRUMP, which rose from below $10 to beyond $70 in just 24 hours on the heels of major excitement surrounding this launch.
However, this foray into the crypto space has raised ethical and conflict-of-interest concerns within Washington. As reported by Bitcoinist last week, the President hosted a gala dinner at his Virginia golf club for top holders of his memecoin, which prompted protests outside the venue.
For TMTG, the decision to invest in BTC represents a new direction for the company, which has primarily relied on advertising revenue from Truth Social. In December, Trump transferred his stake in the company to a trust managed by his son, Donald Trump Jr., who is also a board member.
Following the announcement of the new Bitcoin treasury, shares of TMTG, trading under the ticker “DJT,” initially surged in early trading but later fell by more than 5%.
Bitcoin, on the other hand, has managed to regain the $110,000 after a slight pullback below the $109,000 mark to open the week. Still, the market’s leading cryptocurrency holds gains of over 16% on the monthly time frame and 56% year-to-date (YTD).
Featured image from DALL-E, chart from TradingView.com
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