Trump Media Plans to Form $2.5 billion Bitcoin Treasury, Describes the Crypto as Crown Jewel Asset

Cryptocurrencies rallied in the past few days as bitcoin prices reached record highs of almost £83,031 ($112,000) per token. The cryptocurrency industry continues to gain momentum under the Trump Administration as US regulators work to develop a framework governing digital assets for safe investments and custody of tokens.

Michael Saylor's Strategy continued to ramp up its bitcoin holdings, buying another 4,020 tokens for £316.55 million ($427 million). Furthermore, US President Donald Trump's goal to make America the crypto capital of the world is taking shape, as Trump Media and Technology Group, controlled by the Trump family, announced its intention to purchase £1.85 billion ($2.5 billion) worth of bitcoin on Tuesday.

The media company, which runs the Truth Social media platform, plans to raise $2.5 billion for the bitcoin purchase by issuing and selling £1.11 billion ($1.5 billion) of its common stock and £741.35 million ($1 billion) worth of debt financing via convertible senior secured notes to 50 unnamed institutional investors, according to a Tuesday statement. The offering will close on 29th May, subject to customary closing conditions.

The media company said it plans to use the proceeds from the offering to establish a bitcoin treasury. Crypto.com and Anchorage Digital will offer custody of bitcoin holdings. A bitcoin treasury is a stockpile of cryptocurrency held long-term by a government or company, generally to diversify its assets and hedge against inflation.

TMTG to Become Third-largest Corporate Bitcoin Holder

The $2.5 billion purchase would translate to 22,500 bitcoins, considering a price of £81,549 ($110,000) per token. Trump Media's planned crypto purchase will make it the third-largest corporate bitcoin holder, behind Michael Saylor's Strategy and crypto mining firm MARA.

'We view Bitcoin as an apex instrument of financial freedom, and now Trump Media will hold cryptocurrency as a crucial part of our assets. Our first acquisition of a crown jewel asset, this investment will help defend our company against harassment and discrimination by financial institutions, which plague many Americans and US firms and will create synergies for subscription payments, a utility token, and other planned transactions across Truth Social and Truth+. It's a big step forward in the company's plans to evolve into a holding company by acquiring additional profit-generating, crown jewel assets consistent with America First principles,' said TMTG CEO and former congressman Devin Nunes in the press release.

The Trump company also announced in March that it would partner with Crypto.com to roll out exchange-traded funds (ETFs) for investors to track and access crypto price movements as well as other traditional US stock market securities.

The developments come after Trump signed an executive order in March to form a national bitcoin reserve for the US government comprising tokens that the government has seized from illicit activities to harness 'the power of digital assets for national prosperity.'

Recently, Cantor Fitzgerald, the financial services company previously led by US Commerce Secretary Howard Lutnick, announced a collaboration with other companies, including stablecoin giant Tether, to inaugurate a new entity, Twenty One Capital.

The new company intends to hold 42,000 bitcoins when it goes public, with the goal of serving as an investment vehicle for people or organisations seeking to access bitcoin price movements.

Disclaimer: Our digital media content is for informational purposes only and not investment advice. Please conduct your own analysis or seek professional advice before investing. Remember, investments are subject to market risks and past performance doesn't indicate future returns.