Trump Media's Bold Move: Raising $2.5 Billion to Dive Into Bitcoin
Bloomberg.com5 days ago
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Trump Media's Bold Move: Raising $2.5 Billion to Dive Into Bitcoin

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Summary:

  • Trump Media plans to raise $2.5 billion to buy Bitcoin

  • The fundraising includes $1.5 billion in stock and $1 billion in convertible notes

  • Shares fell 9.2% in early trading after a premarket rally

  • This move reflects a growing corporate trend to invest in cryptocurrencies

Trump Media & Technology Group Corp, the powerhouse behind Truth Social, has announced an ambitious plan to raise $2.5 billion through a combination of stock sales and convertible notes. This capital is earmarked for a significant investment in Bitcoin, signaling a strong belief in the cryptocurrency's value and potential.

The Financial Strategy

  • $1.5 billion in stock sales
  • $1 billion in 0% convertible notes

The company's shares experienced a 9.2% drop to $23.38 in early trading, following a premarket rally. This fluctuation came after a Financial Times report highlighted Trump Media's plans to allocate funds towards cryptocurrencies.

Market Reaction

Despite the initial dip, the move underscores a growing trend among corporations to diversify their treasuries with Bitcoin, viewing it as a hedge against inflation and a store of value.

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