On May 27, 2025, local time in the United States, Trump Media and Technology Group (TMTG), the company behind the Truth Social platform, just dropped a bombshell, announcing plans to raise $2.5 billion through private funding. The company aims to build a Bitcoin treasury as part of its reserves for financial stability and long-term value storage.

From Debunking to Official Announcement, Only 14 Hours Apart

Just the day before TMTG's official announcement, the Financial Times reported that TMTG planned to raise $3 billion ($2 billion in stocks and $1 billion in bonds) to invest in Bitcoin and other cryptocurrencies, with the announcement scheduled before the Bitcoin 2025 conference. However, in response to this news, TMTG not only quickly "debunked" it but also berated the Financial Times journalist as foolish, stating they "even believed a more foolish source."

However, just half a day later, TMTG officially announced the $2.5 billion Bitcoin treasury plan, albeit with a different amount and reference to the so-called "foolish" rumor. TMTG will raise $2.5 billion through the issuance of $1.5 billion in common stock and $1 billion in zero-coupon convertible senior secured notes. According to Bloomberg, this financing is subscribed to by approximately 50 institutional investors, expected to be completed around May 29. Crypto.com and Anchorage Digital will oversee the Bitcoin custody, with Yorkville Securities and Clear Street as the lead underwriters. Howard Lutnick, the newly appointed Secretary of Commerce in the Trump administration and former CEO of Cantor Fitzgerald, will serve as a transaction advisor.

At the time of this announcement, the price of Bitcoin was nearing its all-time high, coinciding with the largest annual digital asset event, "Bitcoin 2025," taking place on the Las Vegas Strip. Last year, this conference solidified former President Trump's image as the first "Crypto President" of the United States, and this year includes Vice President JD Vance, Trump's sons Donald Trump Jr. and Eric Trump, as well as White House crypto advisor David Sacks among other heavyweights, with Michael Saylor of MicroStrategy also in attendance. TMTG's decision to unveil this bombshell just before the conference may be an attempt to leverage the global crypto craze and amplify its market influence.

As soon as the news came out, the market reacted strongly. In pre-market trading on May 27, TMTG's stock price (DJT.O) surged by 18.2% at one point, but quickly plummeted to -12%, ultimately closing up 2.88%. After the market opened, the price fell by nearly 12%, marking the largest single-day decline since March 10. However, at the same time, crypto-related stocks generally rose, with Coinbase up 1.89%, MicroStrategy up 2.1%, and MARA Holdings up 3.8%. This company, with a market cap just over $5 billion, only generated $820,000 in revenue in the fourth quarter of last year but recorded a $32 million loss. Mike Stegemoller, a finance professor at Baylor University, commented, "This looks more like a move to abandon its original business strategy."

In this statement, TMTG CEO Devin Nunes emphasized that Bitcoin is "the premier tool for financial freedom," which will help the company withstand financial institution "harassment and discrimination" and pave the way for subscription payments for Truth Social and the Truth+ platform, as well as future utility tokens. He also revealed that this investment is a key step for TMTG's transformation into a holding company, with plans to acquire more high-quality assets that align with the "America First" principle in the future.

As of the end of the first quarter of 2025, TMTG held $759 million in cash and cash equivalents. This $2.5 billion financing will significantly increase its asset base, but it also leaves the market curious about the company's execution capabilities and risk tolerance.

Embracing the "Stock Market Microstrategy Trend"

Trump's frequent moves in the cryptocurrency field are no longer surprising. Positioned as a bastion of "free speech," Truth Social aims to fight against Big Tech censorship, and its decentralized brand image aligns with the concept of Bitcoin. Among Trump's supporters, the voice of the crypto community is growing louder, and investing in Bitcoin can not only cater to this segment but also potentially attract new users to Truth Social, enhancing the platform's stickiness.

Financial pressure may be another major driver of TMTG's move. Since its launch, Truth Social has been burning through cash at an alarming rate, with uncertain profit prospects. As of the end of the first quarter of 2025, the company's cash reserves were only $7.59 billion, far from enough to support its grand media and tech vision.

TMTG may be planning to emulate MicroStrategy's "Bitcoin Treasury" model—by heavily investing in Bitcoin through equity and debt financing, hoping for its long-term appreciation to boost the company's valuation. This strategy has been highly successful for MicroStrategy, whose founder Michael Saylor has pushed the company's stock price to new highs through similar actions. Recently, David Bailey, a cryptocurrency advisor in the Trump administration, led a $7.1 billion acquisition, transforming the healthcare company KindlyMD into a crypto-first enterprise, describing the plan as a "Square version of MicroStrategy." However, Bitcoin's extreme volatility makes TMTG's plan risky, especially considering its less stable financial foundation compared to MicroStrategy, leading to persistent market doubts about its execution capabilities.

This Bitcoin treasury plan is also part of the Trump family's continued expansion in the crypto space. Last week, the former president hosted a dinner at his Virginia golf club for top holders of the personal cryptocurrency $TRUMP; American Bitcoin, co-founded by his son Eric Trump, announced plans to go public this month; and World Liberty Financial, mainly controlled by Trump family businesses, recently received a $2 billion investment from the UAE government.

On the same day TMTG announced its plan, Donald Trump Jr.'s PSQ Holdings also stated it would explore a digital asset strategy. The convening of the Bitcoin 2025 conference seems more like a rally for the Trump crypto empire. TMTG's plan may not only be about the company's finances but could also be a testing ground for the integration of the Trump political brand with the crypto economy, aiming to extend the "America First" concept to the DeFi stage.

"Biggest Winner" Crypto.com, Trump's "Honeypot Concept"

The encryption strategy of TMTG is inseparable from the support of crypto .com. This cryptocurrency exchange platform is not only one of the custodians of the Bitcoin Treasury but also plays a key role in the broader layout of TMTG. As early as March 2025, TMTG announced a partnership with crypto .com to launch an ETF product through its financial technology brand Truth.Fi, covering assets such as Bitcoin and Cronos. The plan is for crypto .com to provide technical support and custody for this ETF. The ETF is expected to be launched in 2025, pending final agreements and regulatory approval, but it has already demonstrated the depth of cooperation between the two parties.

The alignment between crypto .com and the Trump camp goes beyond the technical level. In October 2024, crypto .com received a Wells notice from the SEC, voluntarily sued the SEC, challenging its regulatory authority. Subsequently, Trump nominated crypto-friendly Paul Atkins as the next SEC chairman, and crypto .com promptly withdrew its lawsuit. In March 2025, the SEC concluded its investigation of crypto .com without taking any enforcement action. In May of this year, crypto .com, which had already established its North American headquarters in Texas, also opened a new office in Washington, D.C., bringing it closer geographically to the White House.

When the "America First" ideology meets DeFi, TMTG's Bitcoin Treasury plan may not only be a corporate financial strategy but also an extension of the Trump political machine into the field of digital assets.

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