Trump Media Invests $2.5 Billion in Bitcoin for Treasury Strategy

Trump Media Group is planning a major investment in Bitcoin, setting aside $2.5 billion to allocate toward digital assets as part of a wider strategy. This move follows the company’s establishment of Truth.Fi, a fintech division authorized to invest in cryptocurrencies like Bitcoin. The expansion into crypto comes amid growing scrutiny from political opponents over potential conflicts of interest. The funding is expected through an equity offering based on Trump Media’s recent stock price, potentially valued at around $5.7 billion. [Details about the exact terms of the offering are still being negotiated]. Trump Media has a history of expressing interest in cryptocurrency. In January it launched Truth.Fi to invest up to $250 million into Bitcoin and other crypto assets. This initiative included exploring the creation of its own utility token and American-made crypto ETFs, further fueling concerns from political critics. To mitigate potential conflicts of interest ahead of the 2024 election cycle, Trump reportedly transferred his ownership stake in Trump Media to a revocable trust controlled by his son, Donald Trump Jr., This move suggests a desire for separation between his personal activities and those related to the company’s finances. The news aligns with an emerging trend among public companies of utilizing Bitcoin as a reserve asset, notably similar to MicroStrategy’s holdings exceeding $62 billion in Bitcoin. This would make Trump Media one of the largest crypto-focused companies to date.