Trump Media’s $2.5 Billion Bitcoin Treasury Move Signals Bold Crypto Strategy

On May 27, 2025, Trump Media and Technology Group (TMTG), the parent company of Truth Social, announced a significant $2.5 billion capital raise aimed at establishing one of the largest Bitcoin treasuries among publicly traded companies. The announcement, which came just a day after TMTG dismissed similar reports as inaccurate, marks a bold pivot toward cryptocurrency for the company backed by U.S. President Donald Trump.

Details of the Capital Raise

According to TMTG’s official statement, the capital raise comprises $1.5 billion in common stock and $1 billion in convertible senior secured notes with a 0% coupon, subscribed by approximately 50 institutional investors. The transaction is expected to close around May 29, 2025, subject to customary conditions. The proceeds will be directed entirely toward purchasing Bitcoin, with TMTG CEO Devin Nunes describing the cryptocurrency as “an apex instrument of financial freedom” that will protect the company against “harassment and discrimination by financial institutions.” This investment will bolster TMTG’s liquid assets, which already include $759 million in cash and short-term investments as of Q1 2025, bringing its total liquid assets above $3 billion upon completion.

TMTG has partnered with Crypto.com and Anchorage Digital to custody its Bitcoin holdings, leveraging their regulatory compliance and institutional-grade security. Crypto.com operates under multiple jurisdictional frameworks, while Anchorage Digital, a federally chartered crypto bank, has served clients like Visa and Franklin Templeton. This dual-custodian approach underscores the seriousness of TMTG’s treasury strategy.

Reversal of Earlier Denials

The announcement follows a curious twist: on May 26, TMTG sharply denied a Financial Times report claiming the company was planning a $3 billion raise for Bitcoin and other cryptocurrencies, with spokespeople calling the outlet’s sources “dumb.” However, the May 27 confirmation of a $2.5 billion Bitcoin-focused deal suggests the initial report was not far off, though it overstated the amount and scope. The discrepancy has fueled speculation about TMTG’s strategic communication, with some suggesting the denial was a tactic to manage market expectations before the official reveal.

Strategic and Ideological Implications

TMTG’s Bitcoin treasury is not just a financial maneuver but also an ideological one. CEO Devin Nunes framed the move as a defense against perceived financial censorship, aligning with the company’s “America First” ethos. At the Bitcoin 2025 conference in Las Vegas, Donald Trump Jr., executive vice president of The Trump Organization, emphasized TMTG’s commitment, stating, “We seriously long Bitcoin. We seriously long crypto,” clarifying that the treasury will focus solely on BTC, not other cryptocurrencies as initially speculated. This focus distinguishes TMTG’s approach from broader crypto diversification strategies.

The move builds on TMTG’s prior crypto ventures. In January 2025, the company launched Truth.Fi, a fintech platform approved to invest up to $250 million in Bitcoin and crypto-related securities. This earlier step, combined with the new treasury deal, positions TMTG as a significant player in the crypto space, capitalizing on Trump’s public support for digital assets. During his campaign, Trump pledged to make the U.S. the “crypto capital of the world” and signed an executive order in March 2025 to establish a national Strategic Bitcoin Reserve.

Market Reaction and Risks

Despite the enthusiasm, TMTG’s stock (NASDAQ: DJT) fell around 12% to $23.05 on May 27, reflecting investor concerns about dilution from the $1.5 billion stock issuance or skepticism about the crypto pivot’s risks. Bitcoin’s volatility, regulatory uncertainties, and TMTG’s reliance on institutional investors introduce potential challenges.

Critics, including billionaire Mark Cuban, have warned earlier that Trump’s direct involvement in crypto ventures could harm the industry’s credibility, citing the mixed performance of Trump-related tokens, The Block reported. For instance, according to CNBC, data from Chainalysis shows that while some wallets profited significantly from a Trump-linked memecoin, over 764,000 lost money, underscoring the risks of speculative crypto ventures.

Adding to investor concerns, TMTG’s establishment of a Bitcoin treasury may intensify allegations of conflicts of interest tied to the Trump family’s crypto ventures. According to The Guardian, a memo circulating among congressional Democrats accuses TMTG of engaging in a “large-scale cryptocurrency scam” and calls for measures to prevent exploitation of the financial system. Additionally, figures like Senator Elizabeth Warren have pushed for legislation to restrict elected officials’ involvement in certain crypto activities, citing potential conflicts of interest. The rapid expansion of the Trump family’s crypto empire, including memecoins and mining operations, has raised concerns about transparency and potential regulatory violations. TMTG’s substantial investment may invite further regulatory scrutiny.

By leveraging institutional capital and aligning with a pro-crypto ideological stance, TMTG is positioning itself as a major player in the digital asset space. However, the risks of market volatility, regulatory scrutiny, and stock dilution loom large. As Bitcoin continues to gain traction among corporations, TMTG’s bold bet will likely remain a focal point for investors and crypto enthusiasts alike.