Trump Media secures $2.3B deal to buy Bitcoin, selling stock to create a massive BTC treasury, rivaling top corporate holders.
Trump Media’s stock surged after the company confirmed its Bitcoin acquisition, though the move could stir political backlash for the crypto industry. The President’s personal brand is increasingly intertwined with Bitcoin, for better or worse.
Trump Media’s Bitcoin Acquisition
President Trump has ventured into numerous crypto projects, but his company’s latest move could reshape the industry. Speculation about Trump Media’s Bitcoin purchase began earlier this week, and the company has now verified the rumors.
A press release issued today announced that the deal was finalized ahead of schedule:
“Trump Media disclosed today that it has completed its previously announced private placement offering with approximately 50 institutional investors. The offering included [stock sales] with a total purchase price of about $2.44 billion. Trump Media will allocate the approximately $2.32 billion in net proceeds to establish a Bitcoin treasury.”
Since MicroStrategy pioneered the trend, a growing number of companies have become significant BTC holders. Post-2024 election, economist Peter Schiff jokingly proposed that Trump Media should invest in Bitcoin—a suggestion that has now materialized.
The press release allows some flexibility, suggesting that not all proceeds go toward the Bitcoin reserve. However, the third-largest corporate BTC holder, Riot, holds less than $2 billion in Bitcoin. If Trump Media fully commits, its reserve would surpass all but Marathon and MicroStrategy.
Following the announcement, Trump Media’s stock price rose approximately 4%. Bitcoin has shown steady gains recently, with reduced volatility over the past 90 days, making this an opportune time for investment.
By diving deeper into Bitcoin, Trump’s private enterprise is doubling down on an industry central to his political agenda.
However, Trump Media is no stranger to controversy, and this purchase could raise conflict-of-interest concerns. Crypto already constitutes a significant portion of Trump’s wealth, drawing substantial criticism.
This acquisition further ties Bitcoin’s ecosystem to Trump’s personal brand, a connection that may carry risks in the long term.