According to Trump Media and Technology Group, which operates Truth Social and other businesses, about 50 institutional investors will contribute $1.5 billion (roughly €1.38 billion) to the private placement for common shares of the business and an additional $1 billion (roughly €920 million) for convertible senior notes. According to Trump Media, the money raised would be used to establish a “bitcoin treasury.”
Devin Nunes, the chairman and CEO of Trump Media, stated in prepared remarks, “This investment will help defend our company against harassment and discrimination by financial institutions, which plague many Americans and US firms. After the news, Sarasota, Florida-based Trump Media & Technology Group Corp.’s stock fell 9%.
Other businesses have used similar tactics with cryptocurrencies. Through stock sales and debt financing, MicroStrategy Inc., a creator of cloud and mobile applications, has amassed a treasury reserve worth billions of dollars in bitcoin.
Trump has changed his mind about cryptocurrencies. During his first term, he called them “not money” due to their volatility and “based on thin air” worth. During a May 2024 presidential campaign event at his Mar-a-Lago club in Florida, Trump was assured by supporters of the cryptocurrency business that they would spend a lot of money to help him win reelection.
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