Trump Media closes private offering, will use $2.32 billion net proceeds to buy bitcoin

Trump Media and Technology Group has closed its previously announced private placement offering to create its corporate bitcoin treasury.

The offering consisted of the sale of 55.8 million shares of the company’s common stock (ticker DJT), at a price of $25.72 per share, for gross proceeds of $1.44 billion and 0.0% convertible senior secured notes due 2028 in the principal amount of $1 billion, at the conversion price of $34.72 per share, for an aggregate purchase price of approximately $2.44 billion.

Trump Media will utilize the approximately $2.32 billion in net proceeds to establish a Bitcoin treasury and for other general corporate purposes, as well as working capital.

Nasdaq-listed Trump Media is the operator of the social media platform Truth Social and the FinTech brand Truth.Fi. Traders sold the news on Tuesday morning, with DJT shares dropping 10% after the initial announcement of the bitcoin plan. The stock popped on Friday's update, with shares up about 3.3% to $21.52 at publication time. The stock is down more than 36% in the year-to-date period

"Trump Media is focused on acquiring great assets, and this deal will give us the financial freedom to implement the rest of our strategies," Trump Media CEO and Chairman Devin Nunes said in a press release. "It means the Company will have more than $3 billion in liquid assets and our shareholders will have exposure to Bitcoin. The deal positions Trump Media for the kind of rapid expansion we’ve always envisioned, and we look forward to advancing even further throughout the America First economy."

The offering will place Bitcoin on Trump Media’s balance sheet alongside existing cash, cash equivalents, and short-term investments totaling $759 million as of the end of the first quarter.

The company described this as "one of the largest Bitcoin treasury deals for any public company" and said that Trump Media will become "one of the top Bitcoin holders among publicly-traded U.S. firms with one of the most comprehensive Bitcoin treasury strategies."

Strategy (formerly MicroStrategy) established the trend of corporate bitcoin reserves, with its total holdings sitting at 580,250 BTC .