Trump Media Announces Approximately $2.5 Billion Bitcoin Treasury Deal

Rhea-AI Summary

Trump Media and Technology Group (DJT) has announced a major $2.5 billion Bitcoin treasury deal through a private placement offering. The deal comprises $1.5 billion in common stock and $1.0 billion in convertible senior secured notes with approximately 50 institutional investors. The company plans to use the proceeds to create one of the largest Bitcoin treasuries among public companies.

The offering is expected to close around May 29, 2025. Combined with existing cash and investments of $759.0 million, the company's liquid assets will exceed $3 billion. CEO Devin Nunes stated this move will help protect against financial institution discrimination and create synergies for subscription payments, utility tokens, and transactions across Truth Social and Truth+ platforms.

Crypto.com and Anchorage Digital will provide custody services for the Bitcoin treasury. The deal marks a significant step in Trump Media's evolution into a holding company focused on acquiring America First-aligned assets.

Positive

• Significant capital raise of $2.5 billion strengthens balance sheet
• Total liquid assets to exceed $3 billion post-deal
• Strategic move into cryptocurrency could provide payment solutions and financial flexibility
• Zero-interest convertible notes (0.00%) indicates favorable financing terms
• 35% premium on convertible notes shows investor confidence

Negative

• Substantial dilution for existing shareholders through new stock issuance
• High exposure to volatile Bitcoin market could impact financial stability
• Significant concentration of assets in a single cryptocurrency poses risk
• Potential regulatory risks associated with large-scale crypto holdings

Insights

Financial Strategist

Trump Media raising $2.5B to create a Bitcoin treasury, significantly transforming its balance sheet and strategic direction toward becoming a holding company.

The $2.5 billion Bitcoin treasury deal represents a substantial transformation of Trump Media's balance sheet and strategic positioning. This private placement breaks down as $1.5 billion in common stock at market price and $1 billion in 0% convertible senior secured notes (with a 35% premium conversion price). Combined with existing cash and equivalents of $759 million, this will push total liquid assets beyond $3 billion.

This move is unprecedented in scale for a company of Trump Media's size and represents one of the largest corporate Bitcoin treasury deals ever executed. The zero-percent interest rate on the convertible notes is particularly favorable for the company's capital structure, as it allows them to raise significant capital without incurring interest expenses.

The strategic justification appears multifaceted: creating a buffer against potential financial institution discrimination, developing payment infrastructure synergies for their platforms, and positioning for possible expansion into crypto-based financial services through their Truth.Fi brand. More broadly, this signals the company's evolution toward a holding company model that will seek additional acquisitions.

The use of approximately 50 institutional investors to execute this private placement indicates significant institutional interest despite the company's politically polarized profile. The company has engaged multiple placement agents and established custody arrangements with Crypto.com and Anchorage Digital, suggesting they've created a comprehensive implementation structure for this bold strategic pivot.

Company Liquid Assets to Jump to Over $3 Billion

SARASOTA, Fla., May 27, 2025 (GLOBE NEWSWIRE) -- Trump Media and Technology Group Corp. (Nasdaq, NYSE Texas: DJT) ("Trump Media" or the "Company"), operator of the social media platform Truth Social, the streaming platform Truth+, and the FinTech brand Truth.Fi, announced today that it has entered into subscription agreements with approximately 50 institutional investors, under which the Company agreed to issue and sell approximately $1.5 billion in the Company’s common stock and $1.0 billion in principal amount of 0.00% convertible senior secured notes, for gross proceeds of an aggregate approximately $2.5 billion, in a private placement offering (the “Offering”).

The Offering is expected to close on or about May 29, 2025, subject to satisfaction of customary closing conditions.

The Company intends to use the proceeds for the creation of a Bitcoin treasury. One of the largest Bitcoin treasury deals of any public company, the move closes Trump Media’s previously announced special acquisition fund, which is one of numerous ways, including through potential mergers and acquisitions, that the Company is aiming to expand its reach throughout the America First economy.

Trump Media’s CEO and Chairman Devin Nunes said, “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+. 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.”

The $2.5 billion Offering, comprising approximately $1.5 billion in Trump Media common stock at the last market price and $1.0 billion in convertible notes at a conversion price equal to a 35 percent premium, will place Bitcoin on Trump Media’s balance sheet alongside existing cash, cash equivalents, and short-term investments totaling $759.0 million as of the end of the first quarter of 2025.

Yorkville Securities, LLC and Clear Street LLC acted as Co-lead placement agents, with BTIG, LLC and Cohen & Company Capital Markets acting as Co-placement agents (collectively, the “Placement Agents”). Cantor Fitzgerald & Co. acted as financial advisor. Nelson Mullins Riley & Scarborough LLP is serving as legal counsel to the Company. Reed Smith LLP is serving as legal counsel to the Placement Agents.

Crypto.com and Anchorage Digital will provide custody for Trump Media’s Bitcoin treasury.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in the United States or any other state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Cautionary Statement About Forward-Looking Statements

This press release includes forward-looking statements regarding, among other things, the plans, strategies, and prospects, both business and financial, of Trump Media. We have based these forward-looking statements on our current expectations and projections about future events, including expected timing and result of the Offering, the closing date, potential merger & acquisition activity, the rollout of products and features, our Bitcoin treasury strategy, the future plans, timing and potential success of the streaming services and the launch and success of our financial services and FinTech platform. Although we believe that our plans, intentions, and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions, or expectations. Forward-looking statements are inherently subject to risks, uncertainties, and assumptions. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events, or results of operations, are forward-looking statements. These statements may be preceded by, followed by, or include the words "believes," "estimates," "expects," "projects," "forecasts," "may," "will," "should," "seeks," "plans," "scheduled," "anticipates," "soon," "goal," "intends," or similar expressions. Forward-looking statements are not guarantees of future performance, and involve risks, uncertainties and assumptions that may cause our actual results to differ materially from the expectations that we describe in our forward-looking statements. There may be events in the future that we are not accurately able to predict, or over which we have no control.

About Trump Media

The mission of Trump Media is to end Big Tech's assault on free speech by opening up the Internet and giving people their voices back. Trump Media operates Truth Social, a social media platform established as a safe harbor for free expression amid increasingly harsh censorship by Big Tech corporations, as well as Truth+, a TV streaming platform focusing on family-friendly live TV channels and on-demand content. Trump Media is also launching Truth.Fi, a financial services and FinTech brand incorporating America First investment vehicles.

Investor Relations Contact

Shannon Devine (MZ Group | Managing Director - MZ North America)
Email: shannon.devine@mzgroup.us

Media Contact

press@tmtgcorp.com 

FAQ

What is the size of Trump Media's (DJT) Bitcoin treasury deal?

Trump Media announced a $2.5 billion Bitcoin treasury deal, consisting of $1.5 billion in common stock and $1.0 billion in convertible senior secured notes through a private placement offering.

How much will Trump Media's (DJT) liquid assets be after the Bitcoin deal?

Trump Media's liquid assets will exceed $3 billion, combining the $2.5 billion from the offering with existing cash, cash equivalents, and short-term investments of $759.0 million.

Who will provide custody services for Trump Media's Bitcoin treasury?

Crypto.com and Anchorage Digital will provide custody services for Trump Media's Bitcoin treasury.

What are the terms of DJT's convertible notes in the Bitcoin treasury deal?

The $1.0 billion convertible senior secured notes have a 0.00% interest rate and a conversion price set at a 35% premium to the market price.

When is Trump Media's Bitcoin treasury deal expected to close?

The offering is expected to close on or about May 29, 2025, subject to customary closing conditions.