Trump Media Group reverses stance, confirms $2.5B Bitcoin capital raise

Trump Media Confirms $2.5B Bitcoin Treasury Deal After Initial Denial

Trump Media and Technology Group (TMTG), the company behind U.S. President Donald Trump’s Truth Social platform, has officially announced a $2.5 billion capital raise to purchase Bitcoin (BTC) for its corporate treasury. The move, confirmed on May 27, 2025, follows a day of mixed signals after TMTG dismissed a Financial Times report claiming the firm was raising $3 billion for crypto investments.

Details of the Deal

TMTG’s plan involves issuing $1.5 billion in common stock and $1 billion in convertible notes, with the deal set to close on May 29. The Bitcoin will be custodied by Crypto.com and Anchorage Digital, positioning TMTG as the third-largest corporate BTC holder globally. Posts on X highlight that the deal is backed by 50 institutional investors, reflecting strong market confidence despite initial skepticism from the company itself.

Rocky Announcement and Market Reaction

The confirmation came after TMTG spokespeople derided the Financial Times report on May 26, calling its sources unreliable. However, the official announcement reversed this stance, though it didn’t help the company’s stock price—shares dropped over 12% to around $23.60 following the news. The volatility underscores the market’s mixed reception to TMTG’s aggressive pivot into cryptocurrency, especially amid broader concerns about Trump’s growing influence in the crypto space.

Context and Implications

This deal aligns with the Trump family’s deepening ties to digital assets, as TMTG’s fintech arm, Truth.Fi, has also ventured into crypto-related ETFs. However, the move raises questions about conflicts of interest, given Trump’s political position and his family’s expanding crypto portfolio, which some estimate has increased their net worth by billions. Critics argue this blurs the line between governance and personal gain, a concern echoed in recent calls from Democrat lawmakers for suspicious activity reports on Trump-backed crypto ventures.

For the crypto market, TMTG’s entry as a major Bitcoin holder could further tighten supply, especially as institutional demand grows—evidenced by recent ETF inflows and futures premiums. Yet, the timing is precarious, with Bitcoin stalling at $110,000 and macroeconomic factors like upcoming U.S. inflation data potentially impacting price stability. TMTG’s bold bet may either fuel Bitcoin’s rally or expose it to heightened scrutiny as Trump’s crypto ambitions collide with regulatory and market challenges.