TLDR
- Trump Media accumulated roughly $2 billion in bitcoin and related assets, representing two-thirds of its total liquid assets
- DJT shares jumped as high as 9% on Monday following the announcement
- The bitcoin purchase is part of a previously announced strategy funded by $2.5 billion raised through stock sales and convertible notes
- Trump’s stake in the company is now worth nearly $2.3 billion as cryptocurrency ventures boost his net worth
- The move comes days after Congress passed crypto legislation during “crypto week” and bitcoin hit new all-time highs
Trump Media and Technology Group made waves Monday morning with news that it has built a massive bitcoin treasury worth approximately $2 billion. The announcement sent DJT shares soaring as much as 9% when markets opened.
The bitcoin holdings now represent about two-thirds of Trump Media’s total liquid assets. This marks a major shift for the company that originally launched as the parent of Truth Social platform.
DJT shares were trading up around 4% at 2 p.m. ET following the initial pop. Trump’s personal stake in the company is valued at nearly $2.3 billion.
The bitcoin acquisition follows through on an investment strategy Trump Media announced in May. The company allocated $1.5 billion from stock sales and $1 billion from convertible senior secured bonds specifically for cryptocurrency purchases.
“We’re rigorously implementing our publicly announced strategy and fulfilling our bitcoin treasury plan,” Trump Media CEO Devin Nunes said in Monday’s release. The company plans to continue acquiring bitcoin and related assets based on market conditions.
The timing appears strategic, coming just days after what Republicans branded “crypto week” in Congress. The House passed three cryptocurrency bills during this period, with Trump signing the GENIUS stablecoin bill into law on Friday.
Bitcoin briefly surged past $120,000 during crypto week as investors anticipated clearer regulatory frameworks. The cryptocurrency has since pulled back to around $118,400 but remains near all-time highs.
Crypto Pivot Transforms Company
Trump Media has effectively transformed itself from a social media company into a cryptocurrency and financial services firm. The company’s original product, Truth Social, has struggled to generate substantial revenue despite Trump’s active use of the platform.
The pivot began in earnest this year with multiple crypto-related initiatives. In late January, Trump Media announced Truth.Fi, a fintech brand backed by a $250 million investment allocation including bitcoin and exchange-traded funds.
February brought the launch of a “strategic acquisition fund with select investors.” The company then partnered with Crypto.com in March to develop a series of ETFs.
The crypto strategy reached full scale in late May when Trump Media raised over $2.3 billion in net proceeds. The company sold stock and convertible notes to approximately 50 institutional investors specifically to build its bitcoin treasury.
Presidential Crypto Empire Grows
Trump’s personal cryptocurrency empire extends far beyond Trump Media. The president has embraced digital assets to such a degree that crypto now accounts for most of his wealth on paper, according to Forbes analysis from June.
His other ventures include World Liberty Financial, a decentralized finance entity, and the $TRUMP meme coin. The Trump family has made about $500 million from World Liberty since its September launch, according to Reuters analysis.
The $TRUMP meme coin saw its value increase about 10% to $11.55 during crypto week. Trump effectively controls 80% of the coin’s supply through two companies.
World Liberty Financial’s governance token WLFI more than doubled in value over seven days as holders voted to make it tradable. The recently signed GENIUS bill may benefit this venture since World Liberty has its own stablecoin.
Before taking office, Trump transferred all DJT shares to a revocable trust managed by Donald Trump Jr. However, the assets still belong to Trump as the trust’s grantor and sole beneficiary.
The funds will be available to him after leaving office in 2029. Critics warn that Trump’s crypto interests and political power create potential for conflicts of interest.
Trump has signed an executive order establishing a “strategic bitcoin reserve” and appointed a “crypto czar” as part of his push to make America the world’s cryptocurrency capital. Two additional crypto bills from Congress await Senate approval before reaching his desk.
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