Trump Media Plans $2.5B Bitcoin Treasury Deal Amid Political and Crypto Crosscurrents

Key Points

• Trump Media is reportedly preparing a $2.5 billion Bitcoin treasury strategy.

• The move follows its earlier creation of Truth.Fi, a fintech arm approved to invest in crypto assets.

• Political scrutiny grows as Trump Media’s crypto ventures expand ahead of the 2024 election.

Trump Media Technology Group is reportedly preparing a $2.5 billion deal to invest in Bitcoin as part of a broader push into digital assets.

The move would make Bitcoin a core treasury reserve asset, similar to strategies adopted by companies like MicroStrategy.

The funding is expected to come through an equity raise, with pricing likely based on the company’s May 23 closing stock price of $25.72, which gave Trump Media a market capitalization of around $5.7 billion.

Terms of the offering are still under discussion and have not been finalized.

Crypto Expansion and Political Backlash

The company has previously signaled interest in crypto. In January, it launched a fintech division called Truth.Fi, which was approved to allocate up to $250 million of its cash reserves into Bitcoin, exchange-traded funds, and other crypto-related assets. It has also hinted at launching a utility token and American-made crypto ETFs.

More recently, Trump Media drew attention for hosting a “memecoin dinner” on May 22. The event spotlighted tokens such as TRUMP and MELANIA, and discussed DeFi projects like World Liberty Financial and the USD1 stablecoin. These developments have led to increased criticism from Democratic lawmakers, who point to potential conflicts of interest given Donald Trump’s political role.

In an apparent response to ethics concerns, Trump has reportedly transferred his 53% stake in Trump Media to a revocable trust controlled by his son, Donald Trump Jr. The timing of this move suggests an attempt to distance the former president from the company’s financial strategy ahead of the U.S. election cycle.

The announcement aligns with a growing trend of public firms turning to Bitcoin as a reserve asset. MicroStrategy, for example, now holds over $62 billion in Bitcoin, purchased through equity and debt funding. Trump Media’s plans, if completed, would mark one of the largest crypto treasury moves by a politically connected company to date.

Bitcoin is currently trading at a new multi-month high, having broken above the $110,000 level.

Strong bullish momentum is visible since mid-April, with consistent higher highs and higher lows.

The volume remains relatively healthy, supporting the uptrend.

The move may be fueled by recent macro factors and institutional developments, including the reported $2.5B BTC treasury allocation by Trump Media, and broader institutional adoption.