The U.S. president’s media company will be adopting Michael Saylor’s approach and issuing stocks and convertible notes to buy billions worth of Bitcoin.
After a brief period of “will they, won’t’ they,” it is now confirmed that President Donald Trump’s media company, Trump Media, will be officially buying Bitcoin, starting with a $2.5 billion haul.
Markets rallied slightly yesterday following a report from the Financial Times that cited sources saying that Trump Media and Technology Group aimed to raise $3 billion to purchase cryptocurrencies, such as Bitcoin. The company appeared to refute the claim yesterday, telling reporters “apparently the Financial Times has dumb writers listening to even dumber sources,” but not elaborating further.
However, it appears that the report was not far off at all, after Trump Media confirmed its treasury deal this morning in an official press release and hinted at Bitcoin integrations with Truth Social for “utility.”
The deal will see $1.5 billion of common stock and $1 billion of convertible notes sold to acquire the $2.5 billion, which will then become part of Trump Media’s existing $759 million balance sheet, bringing the company’s portfolio above the $3 billion mark.
In the press release, Trump Media 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+” Nunes continued.
Trump Media, which is part of NASDAQ and trades under the DJT ticker, rallied into the weekend and opened up today’s market at $26.75 per share, but it is down 5.4% on the day at the moment, trading at $24.33.
BTC also surged on yesterday’s report, reaching as high as $110,700, but was promptly smacked down below $110,000. At press time, BTC is trading just above $110,100, up just half a percent over 24 hours.
Last week, the 220 top holders of President Trump’s official memecoin attended a dinner with the president. But attendees told reporters that they were disappointed by the lack of access, while many Democrats offered scathing criticism of the event and accusations of corruption.
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