Trump Media Plans to Raise $2.5B By May 29 to Create a Bitcoin Treasury
The post Trump Media Plans to Raise $2.5B By May 29 to Create a Bitcoin Treasury appeared first on Coinpedia Fintech News
After a previously unconfirmed report of Trump Media raising funds to acquire Bitcoin (BTC) earlier this week, the Donald Trump-backed company announced plans to implement a BTC treasury soon. According to the announcement, Trump Media entered into a subscription agreement with about 50 institutional investors in a bid to raise a total of $2.5 billion,
The company highlighted that $1.5 billion will be raised through selling common stock, while the remaining $1 billion will be raised through 0 percent convertible senior secured notes. Trump Media plans to close the offering by May 29, 2025.
“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 U.S. firms and will create synergies for subscription payments, a utility token, and other planned transactions across Truth Social and Truth+,” Trump Media’s CEO and Chairman Devin Nunes, noted.
Market Impact of Trump Media’s Bitcoin Adoption
The adoption of Bitcoin by Trump Media was in retrospect imminent, especially following the launch of the World Liberty Financial (WLFI). With the deal expected to close before the end of this week, Bitcoin price is well positioned to rally towards a new all-time high (ATH) in the near future.
Moreover, on-chain data shows the number of Bitcoin whales holding at least 1k BTCs has gradually increased in the last few weeks to about 1,455 entities. Consequently, Santiment data shows a significant increase in FOMO traders, especially after the BTC price teased above $110k on Tuesday during the mid-North American trading session.
