The parent company of Truth Social and Truth.Fi, TMTG, identified a way to raise $2.5 billion in a private placement to create one of the largest Bitcoin treasuries by a U.S. company.
The financing consists of 1.5 billion dollars of common stock and 1 billion dollars of convertible notes, each sold with a premium of 35%. The deal should be completed by May 29 which will give the company the opportunity to greatly increase its cryptocurrency holdings.
Trump Media Shifts Toward Crypto Holdings
TMTG will buy Bitcoin with the funds from the stock sale, joining only a few other listed businesses who view crypto as an important financial reserve. After bringing in the $175 million, the company will have $934 million in cash and equivalents, according to Q1 2025 reports.
According to CEO Devin Nunes, Trump Media is undergoing a transformation to become a mainstay company centered on valuable “America First” assets. He described buying Bitcoin as a way to protect himself from discrimination and hostility by financial companies and he called it an instrument for “financial freedom.”
To back its new approach, TMTG will turn to Crypto.com and Anchorage Digital for safekeeping of its cryptocurrencies. Bitcoin will be included in the company’s platforms, for things like subscription fees and a prospective utility token in the future.
Yorkville Securities and Clear Street are managing the fundraising round and BTIG and Cohen & Company act as co-placement agents. Cantor Fitzgerald assisted as financial advisor to the company throughout the deal.
Taking this decisive step with Bitcoin, Trump Media now stands beside others who are committed to blockchain and decentralized finance such as MicroStrategy.
