Trump Media’s Stock Drops Despite $2.5 Billion Bitcoin Treasury Announcement

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Trump Media (TMTG) announced that it has successfully raised $2.5 billion from institutional investors, marking one of the largest allocations of Bitcoin treasury assets by a public company. However, the announcement was met with a mixed market response, as shares of Trump Media closed 10% lower on the same day.

Trump Media Secures $2.5 Billion For Bitcoin Treasury

The substantial funding includes $1.5 billion in common stock and $1 billion in convertible notes, with the proceeds designated for the purchase of bitcoin, which will now be a core asset in the company’s treasury. 

Trump Media confirmed that it has secured subscription agreements with approximately 50 institutional investors to facilitate this ambitious endeavor.

To manage these digital assets, the company will store its Bitcoin with Anchorage Digital and Crypto.com—platforms that recently collaborated with Trump Media to launch its first exchange-traded funds (ETFs). 

This announcement comes as BTC retraces from its recent record highs, coinciding with the Bitcoin 2025 conference on the Las Vegas Strip, which has highlighted President Donald Trump’s emerging identity as the nation’s first “crypto president.” 

Despite the excitement surrounding the IPO, Trump Media’s stock remains volatile, experiencing nearly a 30% decline this year. The company currently holds a market capitalization of about $5.3 billion, contrasted with reported revenues of just $3.6 million and a loss of $400 million in 2024. 

BTC As An ‘Apex Instrument’

Devin Nunes, CEO of Trump Media and former congressman, referred to BTC as an “apex instrument of financial freedom.” He framed this move as a necessary defense against what he described as “systemic discrimination” from financial institutions toward conservative businesses. 

In addition to this treasury initiative, Trump Media has partnered with Crypto.com to launch a series of ETFs and digital asset products, pending regulatory approval. These funds will include baskets of cryptocurrencies like Bitcoin and Crypto.com’s native token, Cronos (CRO). 

The offerings will be branded under the Trump Media name and made available to global investors through major brokerage platforms and the Crypto.com app, which boasts over 140 million users.

The $2.5 billion BTC treasury initiative also follows a broader trend among politically aligned businesses converting their corporate treasuries to Bitcoin-heavy portfolios. 

Additionally, figures like Jack Mallers are emerging to rival established players, backed by significant investment from Tether and SoftBank. David Bailey, another major player in Trump-linked BTC initiatives, recently led a $710 million merger with KindlyMD, shifting the company’s focus from holistic opioid recovery to a crypto-first strategy.

Bailey, a trusted advisor to the Trump administration, described this approach as “Strategy, squared,” emphasizing a commitment to increasing the BTC holdings per share. 

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The daily chart shows BTC’s 3% retrace below its all-time high. Source: BTCUSDT on TradingView.com

Featured image from DALL-E, chart from TradingView.com

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