Key Takeaways
- Trump Media plans to raise $3 billion to acquire crypto assets.
- The capital raise includes $2 billion in equity and $1 billion through a convertible bond.
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Trump Media and Technology Group (TMTG), which runs Truth Social, is seeking to raise $3 billion for crypto asset acquisitions, the Financial Times reported Monday, citing six sources familiar with the plan.
The company targets $2 billion in fresh equity and an additional $1 billion through convertible bonds, sources told the FT.
An announcement on the capital raise may come before the 2025 Bitcoin Conference kicks off in Las Vegas from May 27 to 29.
The event, the largest of its kind, will feature a lineup of high-profile figures and key industry players, such as vice-president JD Vance, Trump’s sons Donald Jr and Eric, and Trump’s crypto tsar David Sachs.
The offering size has increased in recent weeks due to strong demand, according to two people familiar with the plans.
TMTG neither confirmed nor denied the reported fundraising plans. In a statement to the FT, the company criticized the outlet’s reporting and sources, but did not offer further clarification.
The initiative represents the Trump family’s latest venture into crypto assets, as the president pledges to make the US the “crypto capital of the world.” The move comes as Bitcoin reached a record high of $109,000 last week.
TMTG’s approach mirrors that of Strategy, which has grown to a market value exceeding $100 billion after using debt and equity offerings to purchase billions worth of Bitcoin.
The firm, led by Bitcoin advocate Michael Saylor, just announced an acquisition of 4,002 BTC earlier today. Saylor will also attend the Bitcoin Conference.
The secondary share raise will be conducted on at-the-market terms, with shares expected to sell near their Friday closing price of $25.72, representing a market value of nearly $6 billion.
The Trump family’s crypto ventures include an NFT trading card, two meme coins, and investments in crypto mining venture American Bitcoin and stablecoin backer World Liberty Financial.
TMTG also intends to launch ETFs tracking Bitcoin and Cronos in partnership with Crypto.com.
ClearStreet and BTIG are among the potential underwriters for the deal, according to two people familiar with the matter.
Donald Trump Jr. now oversees his father’s 53% stake in TMTG, worth approximately $3 billion, through a revocable trust with sole investment and voting power over the shareholdings.
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