TLDR
- Trump Media & Technology Group (DJT) stock fell 10.38% to $23.05 after announcing a $2.5 billion Bitcoin investment plan
- The company plans to raise $1.5 billion through stock sales and $1 billion via convertible notes at a 35% premium
- Bitcoin will be held on the balance sheet alongside $759 million in existing cash and investments
- Crypto platforms Anchorage Digital and Crypto.com will provide custody for the Bitcoin holdings
- CEO Devin Nunes called Bitcoin an “apex instrument of financial freedom” and part of acquiring “crown jewel assets”
Trump Media & Technology Group stock dropped sharply on Tuesday as investors reacted to the company’s surprise Bitcoin investment plan. The stock closed at $23.05, down 10.38% for the day.
The social media company behind Truth Social announced it will raise $2.5 billion to invest in Bitcoin. This represents a major strategic shift for the company as it looks to diversify its revenue streams.
Trump Media plans to raise the funds through two separate mechanisms. The company will sell $1.5 billion worth of stock at its last closing price. An additional $1 billion will come from convertible notes priced at a 35% premium.
🚨 BREAKING: Trump Media wants to raise $3 BILLION to buy Bitcoin and crypto 🇺🇸
He is aiming to make the US the “crypto capital of the world.” 🚀#Bitcoin #Crypto pic.twitter.com/Um01HEzTcw
— Trader Edge (@Pro_Trader_Edge) May 26, 2025
The Bitcoin purchases will be added to Trump Media’s balance sheet. The company currently holds $759 million in cash and short-term investments as of the first quarter. This Bitcoin strategy follows a growing trend of public companies adding cryptocurrency to their corporate treasuries.
Two major crypto platforms will handle custody for the Bitcoin holdings. Anchorage Digital and Crypto.com will provide security services for the digital assets. This partnership ensures professional-grade storage for the company’s planned cryptocurrency investments.
CEO Devin Nunes expressed strong support for the Bitcoin strategy. He described Bitcoin as an “apex instrument of financial freedom” in the company’s announcement. Nunes also called the move a “big step forward” in acquiring assets that align with “America First principles.”
Following Corporate Bitcoin Trend
Trump Media’s Bitcoin strategy mirrors moves by other public companies. MicroStrategy, now called Strategy, has been the most aggressive corporate Bitcoin investor. The company’s shares soared more than six-fold last year, reaching a market value of almost $94 billion.
Strategy held $23.91 billion in crypto assets at the end of 2024. Several other companies have attempted to replicate this success, including GameStop and various biotech firms.
The corporate Bitcoin trend has accelerated under the Trump administration’s crypto-friendly policies. Companies are capitalizing on rising token prices and regulatory support for digital assets.
Broader Crypto Expansion Plans
Trump Media has been exploring various crypto-related opportunities beyond Bitcoin investment. The company reached a binding agreement last month to launch retail investment products. These include crypto and exchange-traded funds aligned with Trump’s policies.
The Trump family has established multiple cryptocurrency ventures. These include Trump NFTs, a meme coin, and a stake in American Bitcoin, a newly formed bitcoin producer. World Liberty Financial, a decentralized crypto platform offering a U.S. dollar-pegged stablecoin, represents another family crypto initiative.
Trump Media has been actively pursuing mergers and acquisitions to diversify into financial services. The Bitcoin investment represents part of this broader strategic expansion beyond social media.
The crypto push has attracted regulatory scrutiny from lawmakers. Democratic Senator Elizabeth Warren questioned the U.S. securities regulator about supervision plans for ETFs launched by Trump Media.
Cantor Fitzgerald announced plans last month to launch Twenty One Capital with Tether and SoftBank Group. This bitcoin-buying entity formed from a merger with blank-check vehicle Cantor Equity Partners, valued at $3.6 billion.
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