- Trump Media used stock and bond proceeds to grab $2 billion in Bitcoin.
- Trump’s personal crypto stake keeps growing while pushing crypto-friendly laws that boost his own holdings.
Trump Media and Technology Group disclosed a major cryptocurrency acquisition on Monday, confirming it now holds around $2 billion in Bitcoin and Bitcoin-linked securities. This move was revealed just days after cryptocurrency legislation championed by Donald Trump advanced in Congress.
The company emphasized that this purchase followed an investment plan introduced in May.
The strategy, according to the firm, involved spending $1.5 billion gained through stock sales and $1 billion from convertible senior secured bonds to acquire Bitcoin. The total now makes up approximately two-thirds of the company’s liquid assets. CEO Devin Nunes commented,
We’re rigorously implementing our publicly announced strategy and fulfilling our bitcoin treasury plan.
On the same day the announcement was made, Trump Media’s stock (traded under the ticker DJT) closed 3.11% higher after briefly gaining more than 5% earlier in the session. Trump’s share in the company is currently valued at $2.3 billion.
Trump Media’s approach mirrors the steps taken by MicroStrategy (now “Strategy,” ticker MSTR), which also used equity sales to increase its Bitcoin holdings. Strategy recently added $740 million worth of Bitcoin, further reinforcing its role as the largest corporate owner of the digital asset.
Crypto Dominates Trump’s Paper Wealth
A Forbes report from June indicated that cryptocurrency now accounts for most of Donald Trump’s net worth on paper. Once skeptical of digital currencies, Trump has taken a sharp turn, now backing several crypto-related projects. These include signing an executive order to create a national “strategic bitcoin reserve” and appointing a “crypto czar.”
This shift coincides with broader political actions. On Friday, the U.S. House of Representatives passed three crypto-related bills. Republicans called it “crypto week.” Bitcoin reacted with a brief rally, hitting $120,000 before settling at $117,838 at the time of reporting.
Beyond Trump Media’s Bitcoin purchase, Trump has seen large financial gains from other crypto-linked ventures. He has ties to the decentralized finance group World Liberty Financial, which has reportedly generated nearly $500 million for his family since September. Most of that group is controlled by a Trump family business unit.
Revocable Trust Still Tied to Trump’s Crypto Holdings
The president’s investment in World Liberty Financial has faced criticism, particularly given the organization’s ongoing financial gains. Another meme token, $TRUMP, entered circulation around the time of Trump’s inauguration, adding to the family’s digital asset collection. Critics hold that these investment interests bear insoluble conflicts.
Trump placed his DJT stocks in a revocable trust, administered by his son, Donald Trump Jr. However, the properties are still “indirectly” owned by Trump, the grantor, as well as the beneficiary. They can become available for his benefit after he relinquishes his office in 2029.
The Democracy Defenders Fund highlighted these issues in April, noting,
As a stakeholder in crypto assets, President Trump will likely profit from the very policies he is pursuing.
Democratic legislators and legal experts also raised comparable concerns, citing blurred lines between private interest and public policy.
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Source: https://www.crypto-news-flash.com/trumps-media-firm-invests-2-b-in-bitcoin/?utm_source=rss&utm_medium=rss&utm_campaign=trumps-media-firm-invests-2-b-in-bitcoin