Trump Media is diving headfirst into Bitcoin with a jaw-dropping $2.5 billion purchase plan that’s raising eyebrows across Wall Street. The company plans to buy over 22,500 Bitcoin at $110,000 each by May 2025, funded through stock sales and zero-interest convertible bonds. While 50 institutional investors are backing the move, Trump Media’s stock tumbled 10% after the announcement. This treasure hunt positions the media company behind crypto giants like MicroStrategy in corporate Bitcoin holdings, exploring uncharted corporate territory.
The company’s raising funds through a clever mix: $1.5 billion from selling stock and another $1 billion through convertible bonds with a whopping 0.00% interest rate. That’s right, zero percent. At Bitcoin’s current price of around $110,000, they’re looking at scooping up over 22,500 tokens when the deal closes on May 29, 2025.
This move puts Trump Media right behind MicroStrategy and MARA in the corporate Bitcoin holdings game. Michael Saylor’s playbook is clearly being copied here, with Bitcoin positioned as the “apex instrument of financial freedom” and a hedge against inflation. Bold words for a media company branching into cryptocurrency territory. The fixed supply cap of Bitcoin makes it particularly attractive as an inflation hedge.
The market had mixed feelings about this announcement. Trump Media shares tumbled over 10% while Bitcoin prices ticked up slightly. Apparently, investors aren’t entirely convinced this is the smartest play for a company known for Truth Social.
The market’s lukewarm response suggests skepticism about a social media company’s sudden pivot to cryptocurrency investing.
Around 50 institutional investors are backing this private placement offering, which suggests there’s some serious money believing in this strategy. The investment aligns with President Trump’s executive order establishing a national strategic Bitcoin reserve, making this both a business move and a political statement.
Trump Media sees this as part of evolving into a holding company, with potential synergies through Truth Social and their FinTech brand Truth.Fi. They’re talking about subscription payments and utility tokens, painting a picture of crypto integration across their platform. The company is staying updated on regulations to ensure full compliance as the cryptocurrency landscape continues to evolve.
The timing is interesting, coming after alleged harassment by financial institutions that Trump Media claims to be defending against. Whether Bitcoin actually provides that defense remains to be seen. CEO Devin Nunes emphasized the company’s commitment to supporting American firms through this strategic investment.
This investment represents a substantial shift in corporate treasury strategy, pushing the boundaries of what media companies traditionally do with their cash. Trump Media is betting big that Bitcoin will diversify their assets and position them in what they call the “America First Economy.”
The crypto world just got a major corporate player with serious political connections.
