Trump Media announced that it closed a deal to sell vast quantities of stock to purchase over $2.3 billion worth of Bitcoin. This would make his company one of the world’s largest BTC holders.
The company’s stock valuation rallied following the announcement, but it might also invite political blowback to the crypto industry. For better or worse, the President’s personal brand is getting associated with Bitcoin in a major way.
Trump Media Buys Bitcoin
President Trump has embarked on a lot of crypto ventures, but his company’s next plan might transform the whole industry. Rumors began earlier this week that Trump Media was planning to buy Bitcoin, and the company confirmed them.
Today, a new press release revealed that progress has happened sooner than expected and that a deal has been finalized:
“Trump Media announced today that it has closed its previously announced private placement offering with approximately 50 institutional investors. The offering consisted of [stock sales] with an aggregate purchase price of approximately $2.44 billion. Trump Media will use the approximately $2.32 billion in net proceeds from the offering to create a Bitcoin treasury,” it read.
Since MicroStrategy began leading the way, more and more companies are becoming major BTC holders. Shortly after the 2024 election, Peter Schiff mockingly suggested that Trump Media should buy Bitcoin, but it looks like this remark is coming true.
To be clear, the press release leaves a little wiggle room, and 100% of proceeds might not go to this reserve. Still, the third-largest corporate BTC holder, Riot, has less than $2 billion of the token.
If Trump Media commits to this Bitcoin acquisition, it would immediately have a bigger reserve than any firm except Marathon or MicroStrategy.
Since Trump Media made this Bitcoin announcement, its stock price has jumped around 4%. Bitcoin has been doing well lately, exhibiting consistent gains that reduced its volatility in the last 90 days.
By buying in now, Trump’s private business is further committing to an industry that’s been a centerpiece of his political administration.
Of course, Trump Media has also experienced its fair share of controversies, and this purchase might represent a conflict of interest. Crypto already accounts for a huge chunk of Trump’s net worth, which has invited a lot of criticism.
This purchase will further tie the Bitcoin ecosystem to Trump’s personal brand, which may not be advantageous forever.
The post Trump Media Set to Join Top 5 Bitcoin Holders With $2.3 Billion Purchase appeared first on BeInCrypto.
