Trump Media and Technology Group Secures $2.44 Billion to Build Bitcoin Treasury

Trump Media and Technology Group (TMTG) has successfully closed a $2.44 billion private placement with approximately 50 institutional investors. This significant fundraising effort positions TMTG to establish one of the largest Bitcoin treasuries among publicly-traded companies in the United States.

Details of the Offering

The private placement included the sale of 55.8 million common shares at $25.72 per share, generating $1.44 billion in equity funding. Additionally, the company raised $1 billion through 0% convertible senior secured notes due in 2028, which are convertible at $34.72 per share. After deducting transaction costs, TMTG estimates net proceeds of approximately $2.32 billion.

The funds will primarily be allocated to acquire Bitcoin, supporting the company’s crypto-first strategy. Remaining proceeds will be used for general corporate operations.

Bitcoin Custody Solutions

To ensure the security of its Bitcoin holdings, TMTG has partnered with Crypto.com and Anchorage Digital for custody services. These companies are recognized for their robust digital asset security platforms, which will safeguard TMTG’s new cryptocurrency treasury.

Aligning with Financial Freedom

Trump Media, the operator of platforms such as Truth Social, Truth+, and Truth.Fi, emphasized that the deal significantly boosts its liquid assets above $3 billion. CEO Devin Nunes described this move as a step toward achieving “financial freedom,” aligning with the company’s broader vision to expand within the “America First economy.”

“This transaction demonstrates our commitment to a crypto-first strategy and positions us at the forefront of the digital economy,” said Nunes.

Crypto Partnerships and Market Trends

Trump Media’s announcement comes on the heels of the company’s recent plans to collaborate with Crypto.com on cryptocurrency-focused ETFs and financial services. By adding Bitcoin to its balance sheet, TMTG joins a growing list of companies leveraging debt and equity raises to accumulate crypto assets. This trend highlights the increasing adoption of Bitcoin as a strategic asset by public firms, including Strategy and GameStop.

Market Reaction

The announcement had a positive impact on DJT shares, which climbed in response to the news on Friday. This recovery came after the stock had suffered a 10% dip earlier in the week. Despite the rebound, DJT shares remain down by over 36% year-to-date, reflecting broader market challenges.

Advisors and Legal Counsel

The private placement was led by Yorkville Securities and Clear Street, with Cantor Fitzgerald serving as financial advisor. Legal counsel for the transaction was provided by Nelson Mullins for TMTG and Reed Smith for the placement agents.

As TMTG moves forward with its crypto-first strategy, the company’s bold approach to integrating Bitcoin into its balance sheet signals a growing confidence in the future of digital assets. Investors and crypto enthusiasts alike will be watching closely as the company navigates this transformative journey.

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