Trump Media & Technology Group aims to raise $3B to invest in Bitcoin and crypto, signaling a major pivot to digital assets.
According to reports, the capital raise is expected to consist of $2 billion in new equity and $1 billion through a convertible debenture.
The President’s collision with Harvard coincides with Trump Media’s crypto venture
TMTG intends to disclose the offering before a significant crypto conference in Las Vegas. Vice President JD Vance and Trump’s sons, Donald Jr. and Eric, are anticipated to deliver speeches.
ClearStreet and BTIG are potential underwriters, as reported by the Financial Times. The at-the-market share transaction will be conducted near the closing price on Friday.
It is important to note that this action is close to Trump’s threat to redirect $3 billion in federal research grants from Harvard University to US trade schools.
The administration accused Harvard of promoting antisemitism and failing to comply with federal directives, resulting in the freezing of approximately $2.2 billion in grants, primarily from the National Institutes of Health.
In the interim, Harvard has filed a lawsuit, contending that the funding reductions are unconstitutional. Reallocating funds allocated for biomedical research would necessitate congressional action under that proposal.
Critics contend that it is an excessive extension of executive authority. Nonetheless, advocates argue that it would enhance vocational training in industries that are in high demand.
The political Implications of Parallel Funding Initiatives
The timing and scope of TMTG’s crypto ambitions have been scrutinized even though it operates independently of the federal government. This is due to its close relationship with the Trump family and the administration’s broader policy positioning.
The juxtaposition is irrefutable. A Trump-affiliated entity is raising billions for digital asset investment as the administration proposes redirecting public funding to vocational programs and exerts pressure on prestigious institutions.
The crypto industry has made significant progress in the United States due to the President’s pro-crypto initiatives.
However, the ongoing promotion of cryptocurrency by organizations affiliated with Trump does raise legitimate concerns regarding the boundaries between private financial strategies and public policy, as well as the extent of influence and priorities.
In the interim, the US President’s crypto ventures have been the subject of political criticism. Last week, the TRUMP meme coin dinner caused considerable controversy.
To demand a comprehensive guest list, numerous Democratic senators conducted an unexpected press conference.
Previous investments in meme currencies, NFTs, and crypto mining are already part of TMTG’s portfolio. Additionally, it is purportedly developing an exchange-traded fund that emphasizes cryptocurrency.
