According to Donald Trump’s social media company, the Trump Media and Technology Group plans to invest about $ 2.5 billion in Bitcoin as it looks to diversify its revenue sources and expand into the financial sector.
The company announced in a statement on Tuesday that it is raising the funds by selling $1.5 billion in convertible notes valued at a 35 percent premium and $1.5 billion in stock at its most recent closing. The company announced that the funds will be used to create a “Bitcoin treasury.”
At the end of the first quarter, the Bitcoin will be held on Trump Media’s balance sheet along with other assets and short-term investments totaling $759 million. The Bitcoin holdings will be governed by the crypto-currency platforms Anchorage Digital and Crypto.com.
Trump Media CEO Devin Nunes praised the acquisition as a “big step forward” in the company’s plan to acquire “crown jewel assets consistent with America First principles” by saying, “We view Bitcoin as the apex instrument of financial freedom.”
In early trading, the shares of the company that runs Truth Social, a streaming and social media platform, dropped by 6%.
As part of its diversification into the financial services sector, Trump Media has been looking into potential mergers and acquisitions.
It reached a legally binding agreement last month to introduce retail investment products, including exchange-traded funds and cryptocurrency, in accordance with Trump’s policies.
embracing cryptocurrencies
The Trump family has started several beachheads in cryptocurrencies, quickly gaining hundreds of millions of dollars, a tradition that has long been associated with skyscrapers and golf courses. Other crypto forays include World Liberty Financial’s exchange, a meme coin, a stake in a newly established Bitcoin producer called American Bitcoin, and Trump nonfungible tokens (NFTs).
However, lawmakers have been critical of the crypto push, including Democratic Senator Elizabeth Warren, who last month inquired about the US Securities Regulatory Authority’s plans to supervise exchange-traded funds (ETFs) that Trump Media is launching.
Trump’s opinion of cryptocurrencies has changed as he approaches them, citing their volatility and “based on thin air,” in his first term as “not money.”
Trump was assured that crypto industry supporters would spend a lot to win him re-elected at an event at his Mar-a-Lago club in Florida during his presidential campaign in May 2024.
Trump reportedly made accusations that he was combining his personal duties with his White House duties with a swanky dinner with him at his luxury golf club in northern Virginia by hosting 220 of the top investors in one of his other cryptocurrency projects, the $Trump meme coin, last week.
Source: Aljazeera
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