Trump Media To Raise $2.5 Billion In Capital To Buy Bitcoin

Trump Media & Technology Group Corp., the company behind Truth Social, said it plans to sell around $1.5 billion in stock and $1 billion in 0% convertible notes to buy Bitcoin for its treasury.

The company’s shares fell 9.2% at $23.38 in early trading after rallying premarket following a Financial Times report on its plans to raise capital to spend on cryptocurrencies.

The media company is the latest to follow the model that Michael Saylor created at Strategy by using equity and fixed-income offerings to fund Bitcoin purchases. Trump Media will add Bitcoin to its balance sheet along with its current cash, cash equivalents and investments, which were worth $759 million at the end of the first quarter, according to a filing Tuesday.

“This investment will help defend our Company against harassment and discrimination by financial institutions, which plague many Americans and U.S. firms, and will create synergies for subscription payments, a utility token, and other planned transactions across Truth Social and Truth+,” Trump Media CEO and Chairman Devin Nunes wrote in a release.

The offering is expected to close on or about May 29.

Crypto.com and Anchorage Digital will provide custody for the Bitcoin treasury, while Yorkville Securities and Clear Street are acting as lead placement agents for the offerings.