President Donald Trump's media company said Tuesday that institutional investors will buy $2.5 billion in the company's stock with the proceeds going to build up a bitcoin reserve.
About 50 institutional investors will put up $1.5 billion in the private placement for common shares in the company and another $1 billion for convertible senior notes, according to Trump Media and Technology Group, the operator of Truth Social and other companies.
Trump Media said it intends to use the proceeds for the creation of a “bitcoin treasury.”
Shares of Trump Media & Technology Group Corp., based in Sarasota, Fla., tumbled 9%
Other companies have adopted similar strategies through cryptocurrency. Cloud and mobile software developer MicroStrategy Inc. has built up a treasury reserve containing billions worth of bitcoin through stock sales and debt financing.
Trump, who referred to cryptocurrencies in his first term as “not money,” citing volatility and a value "based on thin air," has shifted his views on the technology.
During an event at his Mar-a-Lago club in Florida during his presidential campaign in May 2024, Trump received assurances that crypto industry backers would spend lavishly to get him reelected.
Last week, Trump rewarded 220 of the top investors in one of his other cryptocurrency projects — the $Trump meme coin —with a swanky dinner luxury golf club in Northern Virginia, spurring accusations that the president was mixing his duties in the White House with personal profit.