- Trump Media secured $2.44B: $1.44B from 55.8M shares ($25.72), $1B in 0% notes convertible at $34.72.
- Net $2.32B targets Bitcoin treasury buildup; Crypto.com/Anchorage handling custody. Liquid assets now top $3B.
Trump Media & Technology Group (TMTG) has finalized a $2.44 billion private funding round. The company intends to use the majority of these funds to establish one of the largest Bitcoin holdings among U.S. public companies. Approximately 50 institutional investors participated.
The company sold 55.8 million shares of its common stock for $25.72 per share. This stock sale raised approximately $1.44 billion. Alongside the stock, Trump Media sold $1 billion worth of 0% convertible senior secured notes. These notes are a form of debt that can be exchanged later for common stock at a set price of $34.72 per share.
After accounting for the costs of the deal, Trump Media will have about $2.32 billion available. The company plans to use the largest part of this money to purchase Bitcoin, establishing what it calls a Bitcoin treasury.
This planned Bitcoin purchase aims to position Trump Media as one of the largest holders of Bitcoin among publicly traded companies in the United States. Combined with its existing cash reserves of $759 million, this funding brings Trump Media’s total liquid assets above $3 billion.
CEO Devin Nunes stated this move provides “financial freedom” to implement the company’s strategies. He explained it allows for faster expansion within their vision of an “America First economy” and gives shareholders indirect exposure to Bitcoin through the company’s holdings.
The financing involved two main components. First, TMTG sold 55.8 million common shares priced at $25.72 each. This stock sale generated $1.44 billion. Second, the company issued $1 billion worth of 0% convertible senior secured notes. These notes mature in 2028 and can be converted into common stock at $34.72 per share.
After accounting for expenses, TMTG expects net proceeds near $2.32 billion. The company stated these funds have two primary uses. A substantial portion is allocated for purchasing Bitcoin. The remaining funds will support general corporate activities. Crypto.com and Anchorage Digital have been selected to safeguard the acquired Bitcoin.
This funding significantly boosts TMTG’s available cash, pushing liquid assets above $3 billion. The company operates the Truth Social platform, Truth+, and the planned Truth.Fi service.
TMTG recently announced intentions to partner with Crypto.com. Potential collaborations include crypto-focused exchange-traded funds (ETFs) and financial services. By adding Bitcoin to its balance sheet, TMTG joins other firms like Strategy and GameStop. These companies are similarly utilizing proceeds from stock or debt offerings to accumulate cryptocurrency.
Investment firms Yorkville Securities and Clear Street led the private placement. Cantor Fitzgerald provided financial advice. Legal representation came from Nelson Mullins for TMTG and Reed Smith for the placement agents.
